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Level 1
posted May 21, 2021 8:29:54 AM

Can we deduct moving expense for renter

On December 29, 2020 we closed on a house for our daughter who was divorced.  She is paying us rent for the house. Can we deduct the moving expense that WE paid for on the Schedule E?

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4 Replies
Level 15
May 21, 2021 8:33:17 AM

Moving expenses are not deductible on a federal return except for certain active duty members of the military.

https://ttlc.intuit.com/questions/4482873-which-federal-tax-deductions-have-been-suspended-by-tax-reform

Level 1
May 21, 2021 8:35:22 AM

Thank you for that link.  We've never had an investment property before so this is all new to us.  Thank you for your help!

Level 15
May 21, 2021 8:55:18 AM

Do some reading to get educated ... I hope you entered the home as a depreciable asset and are taking the proper depreciation on the Sch  E   if you daughter is paying a fair market rate for rent.   Start with the IRS pub 527. 

Level 1
May 21, 2021 1:59:35 PM

We only "owned" the house December 29-31, 2020.  We will be having a tax accountant do our taxes next year and if necessary amending this one.  I just want to get it out of here.  Since we get a refund, I don't worry about filing on time.  Thank you for your help!