Do I need to prorate rental expenses and property taxes?

Forum|Forum|5 years ago
March 18, 2021
1 reply
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Do I need to prorate rental expenses and property taxes if I only rent out the house for a few months while the rest of the year is vacant?

MinhT1

It depends.

If your rental home was vacant because you found no tenant and your rental was still available for rent, then all rental expenses and property taxes are deductible.

If you took the property off the rental market, then you have to prorate the expenses and property taxes.

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weiandxianAuthor

I bought the house in July 2020 and rented out in September 2020. Property taxes and home insurance I paid for was for July2020 to June2021. Mortgage interest I paid for was for July 2020 to December 2020.

1. Can I deduct half of property taxes and home insurance expenses as rental expenses?

2. Can I deduct the full amount of mortgage interest as rental expenses?

3. In general, to claim for property tax deduction for rental expenses or itemized expense, do I count for the months the bill covers or whatever the amount I paid out during the year even though the bill covers half of next year's expense(cash basis)?

Thanks!