If I purchased rental property in December of 2019 but have no income to declare for the year, do I need to report that I bought it? Does closing costs get a deduction?

[AlexanderS08]

Yes, even if you have no income because you were still preparing the property for rental at the end of the tax year, you may still be able to deduct expenses incurred or claim depreciation for the year, which would include your closing costs.

Your closing costs are added to what you paid for the property in order to determine how much you are able to claim in depreciation each year.

In order to set up your Rental Property in TurboTax, you need to upgrade to TurboTax Premier.

Once you have upgraded, from the tax home navigate to "Federal", then select "Income & Deductions."

From there, display all income types and select "Rentals, Royalties, and Farms."

Once in that section you will be able to answer all of the questions so that you can claim the expenses you incurred related to the rental of your new rental property.