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hanskristitt
New Member

We purchased a property in 2017 and repairing before renting it out. Can we still write off the mortgage interest and property taxes? If so, where do we enter this?

The property was purchased in 2017 but has not been available to rent due to needed repairs.

4 Replies
Carl
Level 15

We purchased a property in 2017 and repairing before renting it out. Can we still write off the mortgage interest and property taxes? If so, where do we enter this?

On what date did you close on the purchase? Also, what is the earliest date that a renter "could" have moved in? Generally, that's the day you put the "for rent" sign in the front yard. I need these dates, because that will determine if you will report this as a rental property on your 2017 return, or if you have to wait until next year when you do the 2018 return.
hanskristitt
New Member

We purchased a property in 2017 and repairing before renting it out. Can we still write off the mortgage interest and property taxes? If so, where do we enter this?

Thank you for your help.  The close was in mid 2017, we found the main bath was rotted out thereafter and we had to replace the heat in the fall... no chance for a renter until now.
Carl
Level 15

We purchased a property in 2017 and repairing before renting it out. Can we still write off the mortgage interest and property taxes? If so, where do we enter this?

So on your 2017 tax return it's just a 2nd home since it was not "available for rent" at all in 2017. The only thing you can claim on your 2017 tax return is property taxes and mortgage interest, and that's it. You will not be reporting anything concerning this property on a SCH E on your 2017 tax return at all.  You'll deal with this property in the "Your Home" section under the Deductions & Credits tab.
Basically in the Your Home section you'll be entering two separate 1098's most likely. One for your primary residence, and another for your 2nd home. Be careful and read the small print on each screen, or you will most likely find yourself double-claiming things without realizing it.
You will not deal with the SCH E until you do your 2018 tax return next year. At that time, you will indicate that you converted the property from personal use to residential rental real estate. You should also keep all receipts for any and all property improvements you did, as you will be reporting them on the 2018 tax return. It does not matter that the property improvements were done in a prior year either. Property improvements add value to the property, regardless of when they are done.
georgesT
New Member

We purchased a property in 2017 and repairing before renting it out. Can we still write off the mortgage interest and property taxes? If so, where do we enter this?

You may claim the mortgage interest and property taxes on your Schedule A, until the property is rented.

You will add all the improvement on the property to the cost of the property and you will depreciate the property as you start renting it.

Also see the answer to the FAQ on what rental expense you can deduct as you start renting.

https://ttlc.intuit.com/replies/4209856


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