We rent out an apartment which is attached to our main home and depreciate 23% of the home. We have always taken 23% of our property tax and mortgage interest as a rental expense and take the other 77% on our Schedule A itemized deductions. This year due to a major remodel / renovation of the apartment we have excess rental expenses and will have carry over losses that will probably give us a loss for another couple years.
Does it make sense for us to suspend taking the 23% property and mortgage interest as a rental expense so we can take 100% of them in our itemized deductions this year and possibly next year as well until we again have a profit? Or is this a bad idea for some reason?
