Deductions & credits

Hello, to clarify your questions:

 

I want to go back and clarify some things.  The closing statement @jennifervphan provided is dated 2021. You might be preparing a 2022 tax return or you might be planning for 2023.  (Or did you place the home in service as a rental in 2021 and you are preparing a very late 2021 tax return?)

Answer: I purchased the duplex (its two 1BR1BA that share the same roof) in July 2021. I had one tenant in place in one unit and lived into the second unit from Sept 2021 - Aug 31, 2022. In Sept 2022 I moved to NY and rented out the unit that I was staying in. I realized recently that the depreciation was calculated incorrectly and I had accidently double-dipped the mortgage interest deductions in both Schedule A and Schedule E. I will be amending 2021 and 2022 tax year so it's important that the depreciation amount is correct. Attached is the assessor land value. I highlighted in yellow the numbers I am using since I purchased it in 2021.county assessor.PNGdepreciation calc.PNG

 

When was, or will, the property be placed in service as a rental? Was it used as your personal home before it was placed in service as a rental?

Answer: Placed as a rental in July 2021. In 2021, both units were rented out from July to Aug 31, 2021, then half rented out from Sept 2021 - Aug 31, 2022 since I lived in a unit. Starting in Sept 2022 to present, it is both rented out as a rental property.

 

If we consider the mortgage points only, separate from any other fees, the points may be deductible on your personal schedule A as an itemized deduction in 2021, the year of the home purchase. Or, they might be amortized over the life of the mortgage. If you deducted the points in full on your 2021 schedule A, then you can’t deduct them again as a rental expense in 2022 or 2023. 

Answer: I see, I am taking a look at my 2021 tax return and I see it listed on Schedule A, line 8c. Is there someone at Turbotax that can help me review my 2021 and 2022 tax returns? I am in a pickle because I processed these tax returns myself without a CPA and as a first time home-buyer so now I will have to amend the returns myself and I am really afraid of doing it wrong. Thank you!