“Do I have to claim deduction if I don't want to. “--->What do you mean by” Do I have to claim deduction if I don't want to”???. In general, mortgage expenses on rental properties include several items that may be deductible for tax purposes(it reduces your taxable rental income/tax liability on 1040). Sch E of 1040 is the form used to report income and claim deductions for rental property held for investment purposes. A separate Sch E must be used for each rental property, with the totals reported on only one form.As long as you are a real estate professional, you must report income and expenses from rental property on Sch C of 1040.
“B.how would I go back and claim if I decide to.”----> You will need to amend the tax return for the year if you did not claim interest expense deduction. You need to report the interest expenses on the Schedule E line 12. Revising your tax return is done by filing an amendment. You need to use Form 1040X, along with a new Form 1040, plus any other necessary schedules and forms. Amended tax returns have to be mailed to the IRS on paper for manual processing. The IRS typically processes an amended return about 8 to 12 weeks, but this process can take longer during the IRS's busiest times. You should file an amended tax return as you need to correct any piece of information that will alter your tax calculations. You can use an amended return to make corrections to your income/deductions.