CDD FEES DEDUCTION IF YOU OWN RENTAL PROPERTY AND YOU PREPAY THE CDD FEE THE YEAR YOU RENT OUT YOUR PROPERTY

You can deduct your CDD fees on Schedule E for a rental property. My question is if you prepay off the CDD fee and you rented the property the entire year, can you deduct the entire prepaid CDD fee off the year you pay off the entire CDD balance to offset your year of rental income?

51161

Level 15

May 24, 2024 6:41:37 AM

Yes, if you're a cash basis taxpayer (which you almost certainly are).

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CDD FEES DEDUCTION IF YOU OWN RENTAL PROPERTY AND YOU PREPAY THE CDD FEE THE YEAR YOU RENT OUT YOUR PROPERTY