On a rental, mortgage interest is deductible but principal isn't, and depreciation is how the building's cost gets deducted.
David Wiener clears up a common mix-up. The loan doesn't change your basis: in his illustration, a $400,000 rental bought with $80,000 down depreciates the building portion of the full $400,000, because the bank's money counts as your money for this purpose.
From The Tax Strategy Playbook.
Full episode: https://taxstrategyplaybook.com
No-cost analysis through CSSI: https://calendly.com/david-wiener/cs or 770-224-8504, option two
This is educational content, not tax advice for your situation. Talk to your tax professional.