What Is Rental Income?

Rental income is money you receive for allowing someone to use your property. All rent you collect is taxable, but you can deduct expenses like mortgage interest, property taxes, insurance, repairs, and depreciation. Rental income and expenses are reported on Schedule E. If your rental activity generates a loss, passive activity rules may limit how much you can deduct. Renting your home for fewer than 15 days a year is tax-free.