Residential Rental House

Forum|Forum|4 years ago
October 13, 2021
12 replies
53 views

Client purchased a home in the Hamptons for the sole purpose of making it a rental and closed on 07/30/20. As of today the house is still not available for rent, I know I can not write any expenses off until it is made available for but my question concerns the mortgage payments and taxes paid so far. He already has two personal homes, so declaring it personal home is not an option. Can I add the interest and taxes to the closing costs or maybe to the basis of the home when it is available for rent. Any suggestions will be welcome.

ProSeries Basic

This topic has been closed for replies.

Best answer by Terry53029

Your client can use both the mortgage interest as investment interest, and take property tax on his 1040 schedule A if he itemizes. If his property taxes take him over SALT limit ($10000) then he can use the election 266, and capitalize the property taxes

T

Terry53029

Answer

Intuit Community Champion

Your client can use both the mortgage interest as investment interest, and take property tax on his 1040 schedule A if he itemizes. If his property taxes take him over SALT limit ($10000) then he can use the election 266, and capitalize the property taxes

T

taxxman02Author

Level 4

Terry53029

I like your answer thanks and I will be using the 266 Election, my next question though I am using Basic is there a form to use or do I create a word document and attach it as a PDF to send it in electronically. This is a first for me.

T

Terry53029

Intuit Community Champion

Don't know if it is in basic, but in pro, click on where do I enter, and type in 266, and the form pops up, You could also press f6, and form menu pops up

IRonMaN

Level 15

Is the house anywhere near George Costanza's home?

Slava Ukraini!

dkh

Level 15

If it is do you have a message to send to George?

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