Investors & landlords

If I understand this correctly.

• You owned a primary home for 2.5 years.
• You moved out of it.
• You now rent it to someone else.

If that is correct, yes you can deduct the mortgage interest and real estate taxes.  But it won't be as your personal home.

This is a rental property, and it should be posted to Rentals, Royalties, and Farm a Schedule E - Rental

Log into TurboTax

1. Choose Wages & Income
2. Scroll down to Rentals, Royalties, and Farm
3. Select Rental Property and Royalties (Sch E)
4. Continue through the interview and describe your property.
5. You will be reporting.
   1. Rental income
   2. Expenses, this will include the interest and RE Taxes.
   3. Depreciation.  It is important to include depreciation.
      1. It will give you an additional tax break every year.
      2. It is added back when you sell the property.
      3. It is added back regardless of if you took credit for it or not.

If this does not completely answer your question, please contact us again and provide some additional details.

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