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My investment property's Insurance Premiums will not transfer to the income and expense summary sheet. It remains a "0." Why?

 
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JohnB5677
Employee Tax Expert

My investment property's Insurance Premiums will not transfer to the income and expense summary sheet. It remains a "0." Why?

If you have an investment property, you should have a Schedule E for that rental property.  Insurance premium expenses are not deductible on you personal taxes, but they are on a rental or investment property.

 

It is also important to have a Schedule E because you must deduct depreciation on the property.  

 

When you sell the property you will have depreciation recapture.  You will have recapture the depreciation whether you took it or not.

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