It is difficult to find consistent answers on instructions for lines 2, 3 and 4 of form 1116. Especially:
- What should be listed as definitely related expenses of a rental property?
- None (as I would pay management, mortgage interest, real estate taxes, ... even if I was not renting the property)
- All expenses listed on Schedule E
- All expect mortgage interest and real estate taxes (as per 1116 instructions)
- Depreciation
- What should be listed on line 3?
- Real estate tax?
- 0, as 1116 instructions ask to take it from Schedule A (that has no real estate tax because it is on Schedule E)
- What should be listed on line 4a
- Mortgage interest
- 0, as 1116 instructions ask to take it from Schedule A (that has no interest because it is on Schedule E)
- What should be listed on line 4b
- Mortgage interest (treated as "Other interest" on Schedule E due to no form 1098 received)
