Tenant left our house in march 2017. We did not put it on the market. We moved in in Feb. 2018. How do we account for mortgage interest when we weren't in the house?

[MichaelL1]

Was it available to be rented from March 2017 to end of 2017?  Or no attempts made to rent?

[gus1909--]

No.  Actually the tenants stopped paying rent in Feb and left in May.  We did not try to rent after they left.

[MichaelL1 · Accepted solution]

Ok, so the mortgage interest and property (plus other expenses while a rental) is deducted on the Sch E rental schedule.

Then after you no longer held it out for rent, the depreciation stops on the rental.

You would then take the mortgage interest on it as an Sch A itemized deduction for a 2nd home.  

So, for example, say the mortgage interest was $XX amount, you take 5/12's on Sch E and rest on Sch A itemized deduction.  Unless you have the breakout of the exact amount of interest paid as more is paid when the loan balance is higher.