You'll need to sign in or create an account to connect with an expert.
Yes, apportioning mortgage interest, property taxes, and mortgage insurance premiums between Schedule A. personal deductions and Schedule E, rental income and expenses based on floor space and days rented is exactly what you should do.
Yes, apportioning mortgage interest, property taxes, and mortgage insurance premiums between Schedule A. personal deductions and Schedule E, rental income and expenses based on floor space and days rented is exactly what you should do.
What about when entering the purchase price and escrow fees for the property? Also multiply all of those by your scaling factor?
For example, I have a 2 unit owner occupied property where the rental unit is 25% of the building. So I would apportion 25% of the title insurance, transfer taxes, recording fees, etc etc (everything on the settlement statement)?
Yes, if the rental is 25% of the property, claiming 25% of the expenses is correct. Here is a list of deductible closing items, FAQ Rental Expenses | Internal Revenue Service
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
scatkins
Level 2
djpmarconi
Level 1
ilenearg
Level 2
realestatedude
Returning Member
ramseym
New Member