My wife and I have 10.33 acres. We rent 7 acres to a farmer and receive a cash payment per acre paid at the end of the year. Our home is on the other 3.33 acres. Can we claim expenses for a portion of the property taxes we pay and a portion of the insurance(liability) we pay. How would we calculate the amount of property tax we can claim as an expense? The land is worth $70000 and the total value of the home and land is $400000. If the property taxes are $10000, can I claim 70000/400000=0.175 of the $10000 or $1,750? Would I put this expense on form 4835? Thank you for your help.
