I purchase a second home that we plan to move into. However, we decided to rent it for while we work with an architect on it. It was unoccupied from the time of purchase (multiple months) and rented starting mid-December.
How do I handle the following expenses:
1) property taxes? Can deduct them on my personal taxes or only count as a expense?
2) mortgage interest? Do I prorate some on personal and some on rental or entirely on rental?
It is a loss from a rental standpoint and will be rented only for about 1 year. Then it will be rebuilt and we move into.
I'm trying to figure out how to report this and also the property taxes on it. I can potentially pay the supplemental property taxes this year given the proposed tax legislation.
Thanks.