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Deducting Property Taxes Before Listing

I live in California and purchased a rental property in Texas. 

 

The home was purchased in November 17, but was listed in December 17. I'm adding the expenses and assets to TurboTax and had a few questions I would love to get some help on:

  • Can I deduct property taxes from November 17 to end of year or only from December 17 to the end of year? My settlement sheet for the house shows the tax to be paid from Nov 17 to EOY, is there an easy way to calculate that value from Dec 17 to EOY?
  • I added mortgage points to intangible assets. This should not be marked as section 179, correct? TurboTax asks me to verify this at the end of my taxes.
  • We paid a photographer to take pictures for the initial listing, can this be deducted although the cost was incurred before the listing date?
  • The original HVAC system was broken so we replaced the HVAC system before the property was listed. Do I add this HVAC system cost under:
    1) Assets -> Rental Real Estate Property -> Residential Rental Real Estate
    2) Assets -> Rental Real Estate Property -> Appliances, carpet, furniture
    3) Just add it to my cost for my home

Sorry for the slew of questions, I am very new to this. Help on any of these questions would be appreciated! Thanks!

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1 Reply
ColeenD3
Expert Alumni

Deducting Property Taxes Before Listing

1) Can I deduct property taxes from November 17 to end of year or only from December 17 to the end of year? You can take the property tax amount prior to placing the property in service on Schedule A. Once it is placed in service, it is entered on Schedule E.

 

2) I added mortgage points to intangible assets. No, these are not Section 179. Enter the asst as 'new', then select code 163.

 

3) Yes, if this was part of advertising for a tenant.

 

4) If you replaced the HVAC prior to placing the property in service, add it to the basis of the property and depreciate them both as one asset.

 

 

 

 

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