Partial year rental

Forum|Forum|3 years ago
February 2, 2023
1 reply
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Rental house rented 2022 from first of year until June 24th….then I fixed a couple thing, listed and closed on 8/14/2022….for property taxes and interest I pro rate the amount I paid in 2022 and list the amounts thru June 24th as rental expenses? Even though my 1098 will then have different numbers since it captures what I paid thru the closing date of 8/14/22? It was not available to rent after June 24th Thanks

GeorgeM777

Yes, allocate that percentage of the property taxes and interest that relates to the rental period. The remaining percentage gets added to your basis of the rental property. Regarding your 1098 S, you could request that your agent split the amounts to reflect the rental period and the non-rental period. However, whether that is possible or not, keep good records supporting your method of allocating the expenses.

@jonpagel

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