I found this statement:
"line 903 of HUD-1. Hazard insurance – Amortized over the period the payment covers, which is usually one year."
According to the above statement, for a rental property purchased on 6/15/2019, I should divide $600 harzard insurance (listed in closing) by 365 day X 199 day (number of days from 6/15/2019 until 12/31/2019)= $327.12 .
Therefore I can amortize in form 4562 for a period of 12mo then report in my schE $327.12 deduction for year 2019.
the remaining balance of $272.87 will be deducted for 2020.
Is my calculation correct?
