On this hire a CPA. You can write off expenses directly related to the ownership and rental of the property (Management fees, property taxes, repairs and maintenance), Improvements will generally have to be taken over several years. It is also typically a passive activity, so you may be limited in other deductions you can make. Seriously, hire a CPA to do your taxes until you feel comfortable enough to do them yourself.
You looked at schedule E? Not hard if you know how depreciation is calculated. And if you have a loss it could be deferred if your income is high enough.
Just use TurboTax. It'll do the depreciation deductions automatically and transfer them from year to year for you. I have three properties and it does all of them in a snap.
I have always heard that 'when in doubt, take the deduction'. So, that must be the law, right?
