Rental Property

[Gibbesone]

s About Taxes)/Rental Property Advertisement Expert: Adam Shay, CPA - 9/18/2012 On 2010,I bought a house under my LLC name to be rented; however, I could not get a tenant on 2010. I have expenses from the house that I do not deduct in 2010 tax, I would like to do amendment. My question is which form/schedule I should use.

These are my expenses:

1. mortgage interest 1098 year 2010; since I do not have a tenant on 2010, could I use schedule C?

2. utility and fire insurance of the empty house before I can get a tenant, could I use schedule C as well?

3 car mileage since I drive  a lot to make the house ready to be rented. thank you

ANSWER: If you can show that you attempted to rent the house all related expenses would go on Schedule E.  If you previously claimed the mortgage interest on Schedule A you need to remove it and make sure that you don't double count it.  Utilities, insurance, and travel would also be on Schedule E.  Good luck!

---------- FOLLOW-UP ----------

No, we did not attempted to rent the house, we would like to sell the house at that time, but we could not sell it then we got a tenant on August 2011. Then we sold the house last July 2012. Do you think I should amend 2010 or could be included on tax return next year.

[Medyr]

If you did not rent the property than mortgage interest and property taxes should be included on Schedule A for 2010.  Other expenses would be recorded as investment related expenses on Schedule A line 23 but would be subject to a 2.5% Adjusted Gross Income(AGI) limitation before being deductible.

Expenses, etc related to the rental for 2011 should be included on Schedule E.