Rental House & Taxes

You will need to have your tax preparer fill out a Schedule E for your rental property. They should also do form 4562 for depreciation.

Since the rental income is lower than your mortgage payments you will be looking at a loss on the property. That loss will reduce your taxable income.

You may consider increasing your rent to cover the full mortgage if you can because the depreciation on the property along with any taxes or repairs you have on the property will bring it to a loss on paper which still has the benefits of reducing your income.

You'll just show a loss on it--that is, the expenses were more than the profit. Therefor, even though you collected some funds, you won't pay taxes on your "gravy" because there wasn't any.
Make up a quick P/L statement (expenses vs. profit).

My understanding is you can write off the loss you are taking (the difference between your mortgage and what you get in rent). I'm pretty sure it's a total write off. IRS.gov is a good reference website.

If it was a "wash", then you won't pay anything in taxes. If it is an investment property and you took a loss on it, you can claim it as a business loss on your taxes.