Here are the specifics:
- Purchased property #1 in 2005 for 325K and lived in it until June 2016
- Purchased property #2 in June 2016 and made it my primary residence
- Rented out property #1 from 8/2016 until 2/2018, i.e. collected rent for 1/2018 and 2/2018 and then put it up for sale.
- Sold property #1 in May, 2018 for 460K
- Paid a total $2000 in mortgage interest for Property #1 in 2018
- Paid a total of $5000 in property taxes for Property #1 in 2018
- Claimed about $10,000 in depreciation on Property #1 for 2016+2017 combined
How do I make sure I get the maximum deduction of mortgage interest and property taxed paid for property #1 in 2018? I suppose I treat 2/5 of this as rental expense, since the property was rented out for 2 out of the 5 month I owned it in 2018? What about the rest of the interest and prop tax?
Also, I suppose I need to claim 2 months' worth of depreciation as a rental expense in 2018, and then include this amount in the place where turbo tax ask me how much depreciation I claimed?
