Need advice in renting out my home (rental, mortgage)

[PharmboyinNC]

So am definitely not landlord material and will be out of state soon, so I've contacted several rental management companies.

So far I've had 50-100% of first rent as commision then 7%-10% monthly commision for management fees. I am following up with one that asks $200 up front and $200 for every new tenant plus the 8% monthly commision.

I plan on leaving ~$500 in a separate account that the company can access if needed, and that anything over $200 in costs be approved by me unless it is urgent attention.

Since this is a business, I know most of my business expenses are deductable, like mortgage interest, property taxes, maintenance and repair bills, plus supplies.

But my questions is what NC requires and how to file for taxes. Do I have to report the money generated from this rental as income? The rent does not cover all of my mortgage and escrow, so how do I navigate this?

[CHTransplant]

I'd start with the relevant IRS publication on rental properties:

Publication 527 (2008), Residential Rental Property

The state tax implications are probably very similar, since NC starts from Federal taxable income.

[adlnc07]

Originally Posted by PharmboyinNC

But my questions is what NC requires and how to file for taxes. Do I have to report the money generated from this rental as income? The rent does not cover all of my mortgage and escrow, so how do I navigate this?

You will report it as income but then deduct the expenses you mentioned, along with depreciation likely resulting in a net loss. Remember that some of your mortgage payment is priniciple, so that will not be deductible.