Rental income investments questions?

Hi, I'm planning to buy a condo for renting it out.

Here are some numbers for example:
purchase cost: 100 000
down payment: 10 000
finance: 90 000 for 30 yrs at 6%
mortage: 540
hoa: 300
pmi: 42
property tax : 168
which makes total payments : 1 050/month

if i rent it out at 1100,
what would be the taxable amount on this

income 1100*12=13200
expenses 1050*12=12600 ?????
or can i deducte everything execpt mortage
(300+42+168)=510 * 12=6120

taxable income=13200-12600 or 13200-6120

(of course i can deduct other stuff) but the question is on the mortage itself.

2. using those numbers, how depreciation is done. i don't really understand the depreciation .

considering that if i sell the condo at the end won't i be taxed more for the difference, if i used depreciation.

thanks sincerely
henri

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the idea of "yahoo answers" is to get knowledge from other people who has done it.
talk to a CPA is not an answer.

answer only if you know .

of course other stuff are deductible too (repair, etc) , but the mortage is or is not?

Definitely talk to a CPA but also consider doing a 1031 exchange when you do decide to sell it. It allows you to buy another property for investment without having to pay capital gains taxes at the time of the sale of the original property.

You would be best served to have a CPA who works with rental properties give you the numbers here. They could assist you in making smart purchases for the best deductions!

You really need to talk to CPA on this. I did and they helped me, it was worth the expense.

it is incorrect to assume that your only cost for this rental investment is the mortgage components. you will need to pay for repairs, bad debts, advertising, etc.. rental investment on a single family home is tough, real tough. consider everything!

I'm betting you can't rent a $100,000 property for 1,100. The numbers don't work.

Assume you can. At best, you are breaking even. You have no back up for lost rent, repairs, etc.

Your mortgage and HOA should NEVER be more then 50% of the rental income.

Talk with a CPA or review the IRS material for rental income. It's explained there.