All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

Posts: 1
Registered: ‎04-21-2017

Mortgage Interest and Property Depreciation on Rental

On my 2016 return I entered only about half of my mortgage interest paid as the servicer on my rental property switched and I misplaced the 1098 from the original servicer. For this reason, I am amending my return and have entered the appropriate information. Unfortunately, even though it was a little over 3k in interest my amount owed never changed. Is this correct?

During this process I also found another mistake. When I changed my Property vs Land owned to 100% Property value as it is condominium I also did not see a change in the amount owed.  


I thought both of these corrections would result in me owing I incorrect? Any help will be greatly appreciated.





Trusted Council Member
Posts: 6,191
Registered: ‎02-23-2016

Re: Mortgage Interest and Property Depreciation on Rental

Hi George,


Welcome to the H&R Block community.


The loss on a rental is limited even if you actively participate, so if you already had the maximum allowed loss being deducted on page 1 of the 1040 your tax liability will not have changed.  The maximum allowed is $25,000 per year if you actively participate in the rental activity.


The only time this is different is if your primary business is renting properties (you're a licensed agent, etc.).  In that scenario you would have a business and won't be subject to the limits on losses.



If you have any other questions I'll be glad to help.



Senior Tax Advisor (Tampa, FL)