topic Rental Property Question in Deductions & credits

Rental Property Question

globug666 — Mon, 23 Feb 2026 12:19:13 GMT

I have rental property and I was affected by a Hurricane in FL in 2021. My rental was not originally available to rent and then once the hurricane hit, I was unable to place it in service to rent. Can I deduct my mortgage interest, insurance and property taxes on my 2022 taxes under that rental property?

Also, I was facing foreclosure on another rental rental property and paid foreclosure expenses to avoid having the property foreclosed on. Can I deduct those fees?

Can I also deduct code enforcement fines on my tax return for my rental?

Re: Rental Property Question

leeloo — Fri, 17 Feb 2023 15:37:31 GMT

No, noe of these are deductible. Property one appears never to have been available to rent. Property must be placed inservice before any expenses can be taken.

Penalties for being in violation to law are not deductibel.

Foreclorure fees are not deductible, but if you used an attorney, his fees would be.

Re: Rental Property Question

HopeS — Fri, 17 Feb 2023 15:49:18 GMT

With regards to your first question, if your property was not rented in either 2021 or 2022, you cannot deduct these expenses on your SCH E (Rental Property). since the property was not available to rent in 2022.

The fees paid for foreclosure are only deductible as Rental Expenses if the property was rented in the year of the foreclosure. In addition, the code enforcement fines are considered penalties and are therefore not deductible.

@globug666