On Schedule E, I did not rent my residential rental in 2024 due to a federally declared wildfire natural disaster, which completely destroyed my rental property in 2023. I plan to rebuild this rental property and am still in the architectural design and permitting process now in 2025. I have carryforward losses from previous years for this rental property. I still have expenses in 2024 for mortgage interest and (reduced) insurance coverage. I was planning to file my taxes showing $0 rental income in 2024, 0 days available for rent, 0 days personal use, the ~$18,000 mortgage interest and ~$300 insurance expenses, and $0 depreciation expense because all assets were completely destroyed by the fire, so there's nothing left to depreciate. I have other rental properties, some with gains some with losses, and some with carryforward losses from previous years, as well. If I do this, TT will apply the carryforward losses from this property, and the other properties, proportionately as it does in normal years. Is this allowed by the IRS? Or, do I have to remove this property from Schedule E in 2024 and put it back in service in the future (say by 2026?) when the rebuild in complete and the property is available for rent again? If that is the case, can I deduct my 2024 and 2025 mortgage interest and insurance expenses in 2026? And can I reinstate my carryforward losses for this property from 2023 at that time in 2026?
