Currently deployed to middle East since October 2019. Renting my home for 4 months from December 25th to April 25th. The rent for entire time is being paid in December. Technically the house is only being rented for 7 days in 2019 but I am most likely going to have constructive possession of the entire 4 month rental income. Pub 527 says:
Advance rent. Advance rent is any amount you receive before the period that it covers. Include advance rent in your rental income in the year you receive it regardless of the period covered or the method of accounting you use. BUT then it goes on to say this........
Rental of property also used as your home. If you rent property that you also use as your home and you rent it less than 15 days during the tax year, don’t include the rent you receive in your income and don’t deduct rental expenses. However, you can deduct on Schedule A (Form 1040), Itemized Deductions, the interest, taxes, and casualty and theft losses that are allowed for non rental property. See chapter 5, Personal Use of Dwelling Unit (Including Vacation Home).
Can someone please shed some light on this?
My email is [email address removed]
