Background
I purchased property A on May 28 of 2010. I purchased property B on July 15 of 2023. I continued to live in Property A from July 16 to Aug 3 (20 days) while minor renovations were done to Property B. Tenants moved into property A on Aug 4 of 2023 (which means they occupied property A for 150 days in 2023).
Questions
1.) Property Taxes on Property A: I paid 2022 property taxes ($7.2k) in January of 2023 and I paid 2023 property taxes ($6.8k) in December of 2023. Is the applicable expense period 150 days or 170 days (150+20)? Is the rental property expense $6.8k*(150/365) or is it $14k*(150/365)?
2.) Solar Panels & Back Up Batter: Purchased in October of 2020 for $28,238.69. Ten-year loan (2.99%) on $25264.82 with monthly payment of $243.84. Can the monthly loan payments be classified as an expense (if yes how to account for the 25% tax credit)? Or do I have to classify as a depreciating asset? Or do I do both?
