Let's be clear here. As long as you were trying to rent it out the entire year, any expenses incurred in that year are deductible against the rent income for the year, even if it creates a loss and even if some of those expenses were incurred when it was vacant. "Payments" can be different than "expenses." A mortgage payment is not entirely deductible because a portion is interest "expense" (deductible) and a portion is loan principle (not deductible). Lastly, if your income is above certain limits, not all rental losses are deductible but TurboTax will handle that part beautifully. This comment posted by a CPA.
