Home interest deductions/rental property

rpwiley · ‎June 1, 2019

My wife and I married on 5/29/16. Prior to our marriage, she owned her own home [PII removed] in Charlotte. After our marriage, we moved into the home that I own. We began to rent her property as of 8/1/16. How do I show the mortgage interest, prop taxes, etc. for her home. Do I pro rate the amounts between Schedule A for the time if was owned and the schedule for Rental Income? Thanks

PaulaM · ‎June 1, 2019

Yes, allocate each portion to personal/rental. Ex: Lived in home for 7 months and rental for 5 months. Allocate 60% of interest/property taxes as a personal deduction and 40% as a rental deduction.

For following year, if the property continues as a rental, all of the interest/property taxes will be entered on the rental side.

On the page, Do Any of These Situations Apply to This Property?, mark the boxes for first year to rent and that the property was converted from personal use to a rental in 2016.

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PaulaM · ‎June 1, 2019

Yes, allocate each portion to personal/rental. Ex: Lived in home for 7 months and rental for 5 months. Allocate 60% of interest/property taxes as a personal deduction and 40% as a rental deduction.

For following year, if the property continues as a rental, all of the interest/property taxes will be entered on the rental side.

On the page, Do Any of These Situations Apply to This Property?, mark the boxes for first year to rent and that the property was converted from personal use to a rental in 2016.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Home interest deductions/rental property