Schedule E: No expenses are deductible because we didn't rent it and used it for ourselves. Do we have to report the expenses?

Do we need to fill out all the expenses like utilities, mortgage interest, property taxes and so on for a rental property that we didn't rent and can't deduct any of the expenses for the tax year because we used the property ourselves for more than 14 days or is it enough to just file Schedule E and indicate that we have no deductible expenses for the above reasons? We can't carry the expenses over either, so it doesn't seem worth it to gather all the bills and documents together to provide these figures.

61483

Expert Alumni

Apr 22, 2024 5:34:26 AM

Yes. Assuming the property was used for personal purposes the greater of 14 days or 10% of the days rented at fair rental prices and thus is considered a personal property and the property was rented less than 15 days, then the rent is not taxable and the expenses are not deductible. You can complete the schedule E showing the personal usage and do not enter any income or expenses.

However, the mortgage interest and property taxes paid could be entered as itemized deductions on your personal Schedule A.

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Schedule E: No expenses are deductible because we didn't rent it and used it for ourselves. Do we have to report the expenses?