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Converted rental to primary residence, do I need to prorate property taxes if I used cash basis accounting method?

Rental property for first 3 months, then converted to primary residence 9 months.


All of the tax payments were made in the last 9 months, during my primary residence period. Per cash basis accounting - these were all made during my primary residence period, can I claim all tax payments on schedule a ? or do I need to prorate some to schedule E??? 

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2 Replies

Converted rental to primary residence, do I need to prorate property taxes if I used cash basis accounting method?

Yes, the 3 months when the property was a rental you prorate the taxes paid and enter the amount as an expense on schedule E.  The 9 months the property was your personal residence you enter on schedule A as an itemized deduction

Hal_Al
Level 15

Converted rental to primary residence, do I need to prorate property taxes if I used cash basis accounting method?

"cash basis" does not pin point the payments to the specific day, only to the year. The fact that the payments were made in 2017 means that  your prorate the expenses by use time, 9 months to residence/personal use and 3 months  to rental
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