IsabellaG
Expert Alumni

Investors & landlords

It depends on whether the rental property was available for rent in 2020. Whether or not it was actually rented.

 

If it was, then on the screen asking if the property was rented for all of 2020, you would either check yes, it was rented all year (if it was available for rent the entire time that you owned it) or if not, enter the number of days that the property was available for rent in 2020. You would also enter zero for the amount of rental income received in 2020. You would start depreciating the property in 2020 and claim the interest and taxes for the year on the rental Schedule E.

 

If the property was not available for rent in 2020, then you wouldn't enter anything in the rental section. You could claim the interest paid in 2020 as an itemized deduction (for your main residence and one other property as Home Mortgage Interest, and the real estate taxes paid at closing under Property Taxes.

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