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alaningram14
Level 1

Sale of Rental Home settlement statement; Do I add property tax and interest deductions to the Schedule E?

 
2 Replies
Critter-3
Level 15

Sale of Rental Home settlement statement; Do I add property tax and interest deductions to the Schedule E?

Yes ... the deductions still go on the Sch E as they are not part of the closing costs even if they are on the closing statement. 

TheRonald1
Returning Member

Sale of Rental Home settlement statement; Do I add property tax and interest deductions to the Schedule E?

I would add that they could be treated as part of the property cost basis, or put on Sched E ... just not both.

 

Putting them on Sched E is better.

It will reduce operating income (normal tax rate) ... vs. reducing the capital gain (lower tax rate) on the property sale.

 

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