Solved: Bought a house and rent it out 6 months. Because the previous owner want to live a while before move out. So I have to rental a place, is the rental fee deducted ?
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest second stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
Returning Member

Bought a house and rent it out 6 months. Because the previous owner want to live a while before move out. So I have to rental a place, is the rental fee deducted ?

Bought a house in the end of last year (2015), rent it out 6 months. Because the previous owner want to live a while before move out. So I rent it for them, during this time, I have to rental a place to live before I move in, is my rental fee deducted or not ?

Example, I charge previous owner 1500 dollars one month, but I have to rental a place to live ( pay 1000 dollars ). So my pure gain is actually, 500 dollars.

Is that expense deducted ?

1 Best answer

Accepted Solutions
Alumni

Bought a house and rent it out 6 months. Because the previous owner want to live a while before move out. So I have to rental a place, is the rental fee deducted ?

No. Rent for your personal residence is not deductible, no matter what the reason for it is. Rent that you pay is not deductible and is does not subtract from any rent income that you get.

View solution in original post

2 Replies
Alumni

Bought a house and rent it out 6 months. Because the previous owner want to live a while before move out. So I have to rental a place, is the rental fee deducted ?

No. Rent for your personal residence is not deductible, no matter what the reason for it is. Rent that you pay is not deductible and is does not subtract from any rent income that you get.

View solution in original post

Level 15

Bought a house and rent it out 6 months. Because the previous owner want to live a while before move out. So I have to rental a place, is the rental fee deducted ?

Amounts you pay on rent to live are just living expenses and are not deductible, no matter the reason.

Secondly, I would simply ignore the rental arrangement on your new house.  Typically, this is a short term arrangement and the old owner pays your mortgage until you move out.  There are all kinds of tax complications if you report the home as a rental, especially if you report it as a rental before moving in as your personal home.  So I would just ignore the rental income -- don't report the income, and don't deduct expenses.  Just pretend it never happened.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
Dynamic Ads
v
Privacy Settings