how do I file rental property on a tax return?

[PaPerBoy8907]

I just bought a house for rental and investment purposes only in michigan. When it comes time to file the taxes for 2008, how would I go about doing so. should I file it as capital gains income or something else? I have the house for nothing more than an investment, I plan on selling when the market rebounds, oh yeah I already have tenants in the house does that affect taxes at all?.....PLEASE HELP

[gaza]

IRS have a special form # for rentals.  Not capital gains.  You have to maintain accurate records each month.  1st you take a Deprecation deduction (this is done on the form I just mentioned) Make a spreadsheet that show all you income and expenses by the month.  You will either have a gain or a loss.  If you rent exceeds your expenses, you have a profit, then deduct you Monthly Deprecation, that will end up being your TAXABLE amount.  Deprec is calculated by dividing the what you paid for the house by its life.  150,000 divided by the number of yrs
say, 40 yrs, that's $3,750 yearly, $312 per mo.  You better call an accountant.  I don't think you should do this on your own.