where to enter 2nd home/rental property mortgage payments in the means test?

[silver]

I have a 2nd home that occasionally earns some rental income

My question is where do I enter the mortgage payments (principal and interest)? Do I put them on Line 5b (ordinary and necessary operating expenses) or line 42 (future payments on secured claims)?

Thanks

[tcreegan]

Hi silver,

Line 5 is the profit/loss from the rental Rent minus "reasonable and ordinary" operating expenses, no depreciation according to the UST.

The mortgage payment goes on line 42

What I don't know is if the mortgage payment can be included in 'reasonable and ordinary operating expense' For the IRS, no problem. But for the means test, if you list the mortgage payment on line 42 and as part of line 5b you are "double dipping" ...which makes me think the mortgage payment is not inlcuded on line 5b, but you need to verify this one way or the other.

Good luck with this,

Tom in Colo

[silver]

Hey Tom,

thanks for the response.

I don't want to double dip. It would favorable for me to put the mortgage payment on line 42 (instead of line 5b) because it will subtract from my personal gross income, and thus lower my disposable monthly income to where I can pass the means test. I have enough other operating expenses (HOA, repairs) that I can put on line 5b that will wipe out any rental income/profit I write in Line 5a. The questions is, am I allowed to claim the mortgage as an expense on line 42 (since it's not primary residence)?

Thanks