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Employee
April 9, 2019
Solved

is insurance before rental basis tax

  • April 9, 2019
  • 1 reply
  • 0 views

We have a house we are fixing for rental.  It has not rented yet.  We are insuring the house.  Does that go into tax basis or deduction this year?  Same question for utilities.

    Best answer by PaulaM

    You can prorate the insurance while you are preparing the property for rent. Insurance and utilities before the property is ready and available to rent is added to the basis. Insurance after placed in service would be a deduction.

    1 reply

    PaulaMAnswer
    Employee
    April 9, 2019

    You can prorate the insurance while you are preparing the property for rent. Insurance and utilities before the property is ready and available to rent is added to the basis. Insurance after placed in service would be a deduction.

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