Question

Rental Property common expenses - insurance amount (before or after inusrance rate discount)?

Forum|Forum|2 years ago
March 23, 2024
1 reply
0 views

So the insurance rate for my rental property is almost $4,000 per year but since I have multiple products with the insurance provider I get a rate discount of almost $2,000.

When I put the $4,000 amount for insurance costs, instead of the $2,000, on my property common expenses I am looking to save almost $500 on federal taxes that I have to pay. The true cost of the insurance is $4,000 but thats not what I pay so can I still claim that?

I cant seem to find the answer anywhere on if this is allowed or I have to use the after discount rate. Can anyone help?

A

AnnetteB6

If you are claiming a deduction for an expense, such as your insurance, you must claim the amount that you actually pay. You cannot claim an un-discounted rate if you are paying a discounted rate.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"