Purchased rental mid Dec. Paid Dec HOA+prop taxes in closing costs. Rented 15 days but management co. paid me mid Jan. Can I deduct HOA + taxes for Dec on 2018 taxes?

[minpinfan]

I am not sure if I should add this property on my 2018 taxes (closed Dec 2018), or if I should hold all for my 2019 taxes.  The property management company always pays the rental earnings the following month, so I do not have income to report for the 15 days of December.  I do have the HOA and property tax expenses that were paid in December.  If I don't claim them this year (because no rental income came to me), can I still claim the HOA and taxes later on my 2019 tax return?  Thanks in advance!

[Leonard · Accepted solution]

You will deduct your expenses incurred in 2018 on your 2018 tax return, prepaid property taxes and HOA fee. You were actively renting your property so these expenses are deducted in 2018.

You will include your rent payments received by you in 2019 on your 2019 tax return that is when you actually received the payments.

You will report all your rental income and expenses on Schedule E

[minpinfan]

Thank you, Leonard!! I appreciate your help!