2018 Mortgage Interest Rental Property

[obrutxat]

Hello,

I bought an investment property in 2018 but didn't rent it until 2019.  I do have a 1098 from the bank for 2018 mortgage interest paid.   Is the 2018 mortgage interests deductible for 2019 tax return and if yes, would it go on the same screen under Business Income & Expense / Report Mortgage Interest.

If it's not deductible in schedule E for 2019, could I have deducted in schedule A last year?

Thank you in advance for your help.

[AnnetteB6]

The 2018 mortgage interest for your rental property is not deductible on your 2019 Schedule E.

If the property had been advertised and available for rent during 2018, even though it was not actually rented until 2019, then it would have been considered placed in service in 2018 and the 2018 mortgage interest would then be claimed on a 2018 Schedule E.  

Otherwise, if the rental property can be considered your second home, then you could have deducted the interest on your 2018 Schedule A.

[obrutxat]

Thank you Annette