Means Test and Rental Income - Your Thoughts Please

[XploringOptions]

Hi ya'll!

In line 5 of Part II of the Means Test, you are to list "gross receipts" and "ordinary and necessary operating expenses". Do operating expenses include the mortgage payment for the home? Common sense tells me it does, but I would like to hear your input as well!

Thanks!

[lrprn]

In line 5 of Part II of the Means Test, you are to list "gross receipts" and "ordinary and necessary operating expenses". Do operating expenses include the mortgage payment for the home?

Part II Line 5 is for listing income, not expenses. This is where income that a filer may be receiving from rental properties minus the operating expenses of the rental properties is supposed to go. If you don't have rental properties and aren't receiving rental income, then place zero on these lines.

Your mortgage and other expenses are entered in Part V. Your mortgage expense goes on Line 20 and (if necessary) Line 21.

[XploringOptions]

I understand that, but for 5 of the 6 months prior to the time I will be filing, my house was being rented. I received 1725 in rent each month, but the mortgage is 1996. What I am asking is if the mortgage qualifies as an operating cost for the rental property. I definitely didn't make any money, but instead lost money each month they were in the house. If 1725 goes into part a, and 1996 part b, then I can list 0 for the line item. This is what I am asking...?