Paid insurance in 2016 for year 2017

skf413 — Tue, 04 Jun 2019 21:15:26 GMT

paid for 2017 property insurance in December 2016. Does this count as an expense for 2016? It's for a rental property

Usually yes. You deduct expenses in the year paid provide...

jtax — Tue, 04 Jun 2019 21:15:27 GMT

Usually yes. You deduct expenses in the year paid provided they are not prepaying more than 12 months in advance. ("12-month rule."). I say usually because there are some businesses who are not cash basis, calendar year taxpayers, and they might have different rules. But if you are an individual filing a Schedule E, then yes, deduct the 2016 payment on your 2016 taxes.

See http://www.nolo.com/legal-encyclopedia/rules-deducting-prepaid-business-expenses.html

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Paid insurance in 2016 for year 2017

Usually yes. You deduct expenses in the year paid provide...