we have relatives living in our 2 properties and get no rent-We need to take if possible expenses such as taxes, insurance -how do we take deductions?

[wcp0031938]

Turbo tax does not show how to handle property owned and then lived in by relatives and not paying rent- How can my wife and I deduct tax & insurance for such?

[rjs · Accepted solution]

You can claim an itemized deduction for real estate tax on any property that you own in the United States, no matter how it is used. In TurboTax go to Federal Taxes > Deductions & Credits > Your Home > Property Taxes. There are separate boxes for real estate tax on your primary home and on other real estate.

Real estate tax is an itemized deduction. It will not reduce your tax or increase your refund unless your total itemized deductions are more than your standard deduction. Also, the total deduction for state and local taxes is limited to a maximum of $40,000 per year ($20,000 if you are married filing separately). The maximum applies to the total of real estate tax, personal property tax, and either state and local income tax or state and local sales tax.

Insurance on property that is not being rented is not deductible.