topic Question about property tax and insurance deduction for rental property in Investors & landlords

Question about property tax and insurance deduction for rental property

pastorlarry — Sat, 25 Jan 2025 21:26:10 GMT

Hi, I rented my house out for 60 days inn 2024. Turbo tax asks how many days the property was rented for. Then asks what I paid for property tax and for property insurance, but does not specify if I should put in the prorated two months or if I put the entire year and Turbo Tax will automatically prorate. Can anyone please tell me if I put in the prorated amounts or the entire year? Thanks!

Re: Question about property tax and insurance deduction for rental property

DianeW777 — Sat, 25 Jan 2025 21:31:18 GMT

Please clarify if you converted the property to full rental activity in 2024, or whether you had casual rental use in 2024. With this information we will be able to guide you more clearly and correctly.

Re: Question about property tax and insurance deduction for rental property

pastorlarry — Sat, 25 Jan 2025 21:55:58 GMT

Hi, regarding "casual or full rental" ( I don't really know what these terms mean technically but);

I originally purchased the home in December 2023 as an investment (rental) property.

I fully rented the house for 60 days in Jan and Feb of 2024.

I decided to convert the home to my primary residence in March. Sold my other (at that time) primary home and moved into the property in question in April. This home is now my primary home for the 9 months in 2024.

Re: Question about property tax and insurance deduction for rental property

DianeW777 — Mon, 27 Jan 2025 20:32:10 GMT

You are required to report the rents you received for the two months it was rented. However, you cannot depreciate property that was placed in service and removed from service in the same year. This makes things more simplified now and in the future when you sell this property.

On your tax return you can enter rental income for the two months and take a prorated share of taxes, interest, insurance, repairs or other expenses. The amount would be 60/365 or 16%. You could also decide to report other income without taking deductions or entering a rental property.

Rental Income:

Select Tax Home > Income > Rentals, Royalties and Farm > Start beside Rental Properties and Royalties

Other Miscellaneous Income:

Go to the Income section of TurboTax
Scroll to Less Common Income > Select Miscellaneous Income, 1099-A, 1099-C
Select Other reportable Income > Enter a description (----) and the amount