No, it doesn't work that way. You will report the annual income you receive in rents. Then you will deduct your property annual deductions: mortgage interest, insurance, utilities, repairs and maintenance, property taxes, etc.
The total amount of your mortgage payment includes principle and interest, and maybe property taxes and insurance. The principle part of your mortgage payment is not deductible for income tax purposes.
Answered on Feb 06th, 2016 at 9:38 PM