Does TT calculate and pro rate partial year rental property taxes and insurance, or do I enter them in two places?

[erin7nails]

When we converted the home to a rental in Oct., we purchased a new insurance policy and paid the entire yearly premium via escrow that same month. Do we still pro-rate this amount or use the entire thing? We were refunded by original insurance company the original premiums (pro-rated for the partial year). 

Do property taxes get diveded up and entered in rental AND in personal deductions in TT?

Please advise, thank you!

[PatriciaV · Accepted solution]

Yes, you will enter the expenses while the property was your home separately from the expenses while it was rented (see screenshot below).

As a cash-basis taxpayer, you may include all expenses that were paid, even if they cover more than one tax year. Any refunds should be deducted from the related expense.

Property taxes should be split based on the period of time covered on the bill. For instance, if you pay property taxes in January for all of the current year and you later convert your home to a rental, then some portion of those taxes would be a personal expense, and some would be rental.