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If a property is available for rent during a given month, but is not rented or used personally, is any utility expense for that period still eligible for the deduction?

Forum|Forum|7 years ago
June 3, 2019
3 replies
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This would pertain to there still being an electric/gas/water bill to be paid despite no personal or rental usage of the property.

Best answer by DoninGA

If the rental property is available for rent then any utility usage is an expense that can be entered on a Schedule E.

Carl11_2

Employee

Periods of vacancy between renters is still considered "in service" and expenses are still rental expenses and still deductible as such *PROVIDED* you did not live in the property for one single day during the period of vacancy.

Carl11_2

Employee

Say a renter moves out on Jun 1st. I spend the next week preparing the property for a new renter and then start advertising Jun 7th. I find a new renter a week later, and that renter moves in July 1st. The property was rented the entire year as far as the IRS is concerned, *PROVIDED* I did not live in that property for one single day during the entire year. So if I rented at $1000/mo for the entire year, with no renter in it for 1 month, then days rented is 365, and my rental income for the year would be $11,000.