Bought a house and rent it out 6 months. Because the previous owner want to live a while before move out. So I have to rental a place, is the rental fee deducted ?

[bupt]

Bought a house in the end of last year (2015), rent it out 6 months. Because the previous owner want to live a while before move out. So I rent it for them, during this time, I have to rental a place to live before I move in, is my rental fee deducted or not ?

Example, I charge previous owner 1500 dollars one month, but I have to rental a place to live ( pay 1000 dollars ). So my pure gain is actually, 500 dollars.

Is that expense deducted ?

[jerry2000 · Accepted solution]

No. Rent for your personal residence is not deductible, no matter what the reason for it is. Rent that you pay is not deductible and is does not subtract from any rent income that you get.

[Opus 17]

Amounts you pay on rent to live are just living expenses and are not deductible, no matter the reason.

Secondly, I would simply ignore the rental arrangement on your new house.  Typically, this is a short term arrangement and the old owner pays your mortgage until you move out.  There are all kinds of tax complications if you report the home as a rental, especially if you report it as a rental before moving in as your personal home.  So I would just ignore the rental income -- don't report the income, and don't deduct expenses.  Just pretend it never happened.