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jp771
New Member

Tenant moved out and we did not try to rent again and don't live there. Can I deduct mortgage interest and real-estate tax for the remainder of the year?

tenant moved out July 3rd of 2016. Property is vacant and not listed. Since I make over 150k, I can't deduct the income loss. Since you can't deduct mortgage interest and real-estate tax on a rental, wanted to classify it as something else - but the only option I saw was to convert to personal use. However no one is using the property so I don't think that applies.
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Accepted Solutions
PaulaM
Expert Alumni

Tenant moved out and we did not try to rent again and don't live there. Can I deduct mortgage interest and real-estate tax for the remainder of the year?

Indicate under the Property Profile section that you 'sold or disposed of this property' in 2016. This will allow you to enter the expenses you had up to the date it was no longer a rental. 

Then navigate to the Sale of Property/Depreciation section to edit the asset summary with the disposal date. The term disposal means, sold, retired, converted, etc. Continue on to calculate remaining depreciation. 

Dispose of any other assets in your summary in a similar fashion. Then deduct the proportionate share of interest/property taxes for the rest of the year on the personal side of your return.

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1 Reply
PaulaM
Expert Alumni

Tenant moved out and we did not try to rent again and don't live there. Can I deduct mortgage interest and real-estate tax for the remainder of the year?

Indicate under the Property Profile section that you 'sold or disposed of this property' in 2016. This will allow you to enter the expenses you had up to the date it was no longer a rental. 

Then navigate to the Sale of Property/Depreciation section to edit the asset summary with the disposal date. The term disposal means, sold, retired, converted, etc. Continue on to calculate remaining depreciation. 

Dispose of any other assets in your summary in a similar fashion. Then deduct the proportionate share of interest/property taxes for the rest of the year on the personal side of your return.

See attachments

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