Mortgage payment vs. rental income for taxes

[Jordan Hunter]

I am currently about to rent my home that is under a FHA mortgage. I have lived in the home for over a year as my primary residence. My monthly note is $1,238.00 a month and It will rent for $1,675 a month. I only placed 3.5% down 13 months ago when I purchased the home. My question is how will my taxes work. I understand I can write off expenses and interest among other things. I want to know if my taxes will show $20,100 in extra income even though i'm only actually profiting $5,244 a year off the rent due to my current mortgage. Any and all advice is apreciated!! I am not looking to make a huge profit off of this rental I just want to free up some money. I just want to make sure that the taxes do not wash everything I'm trying to do.

[Andrew Postell]

@Jordan Hunter if you have this structured under your personal name (and not a business entity) you will claim this property under "Schedule E" of your 1040's.  If you review that schedule you will notice that you will show the full income that you earned and then you will deduct all the expenses below that.  After all the expenses are deducted that is what will leave you with your taxable income.  Hope this helps!