Hello, I closed on a rental property in December of 2024. Some work was done on it and it got listed for renting in Feb 2025 (let's assume Feb 15, 2025). It's still not rented. My questions are Should this property be listed in my 2024 tax return?a) I paid mortgage interest for Dec 2024b) I didn't pay any taxes for 2024When I finally add it to my tax return (either in 2024 or 2025), what should I put as the "placed in service date"?

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Purchased a rental property in Dec 2024. Should it be included in 2024 tax return?

Forum|Forum|1 year ago
March 24, 2025
1 reply
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Hello,

I closed on a rental property in December of 2024.

Some work was done on it and it got listed for renting in Feb 2025 (let's assume Feb 15, 2025). It's still not rented.

My questions are

Should this property be listed in my 2024 tax return?
a) I paid mortgage interest for Dec 2024
b) I didn't pay any taxes for 2024
When I finally add it to my tax return (either in 2024 or 2025), what should I put as the "placed in service date"?

Best answer by AnnetteB6

The date you started advertising the property and it was available for rent is the date it was placed in service, February 15, 2025 based on your information shared.

You will not enter it as a rental property on your 2024 tax return. You are allowed to claim mortgage interest on Schedule A for your primary residence and one additional property. If this property would qualify under those circumstances, then you could claim the mortgage interest paid in 2024 on your 2024 return.

AnnetteB6Answer

The date you started advertising the property and it was available for rent is the date it was placed in service, February 15, 2025 based on your information shared.

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ObafAuthor

Employee

Thanks @AnnetteB6

You are allowed to claim mortgage interest on Schedule A for your primary residence and one additional property. If this property would qualify under those circumstances, then you could claim the mortgage interest paid in 2024 on your 2024 return.

I have 3 other rental properties and Turbo Tax asks me to enter the mortgage interest for each of them. Does this mean the above quoted conditions don't apply to my situation?

Or do I qualify because this 'new' property hasn't been rented yet? If so, how do I capture the mortgage interest (I don't own a primary residence)?