2018 tax question - bought rental end of 2018, but didn't rent until 2019

[stephenson]

Hi All,

I believe I know the answer - but, looking for some confirmation ...

Bought rental house mid December 2018, but didn't get it up for rent until 2019.

I would be able to deduct taxes paid on the property, and insurance paid on the property prior to the end of 2018 (it is simply a real estate transaction at this point), but I would NOT enter the property as a rental property as this would start the depreciation calculations (Turbotax).

Am I thinking correctly?

Thanks!

 

[JustCurious]

"2018 tax question - bought rental end of 2018, but didn't rent until 3019."

Wow, that is a long time.

 

[stephenson]

Thanks for correcting the date!

 

[BeachOrCity]

If the property is not “available for rent” it doesn’t go on schedule e. You kind of put yourself in a not so great tax situation by not atleast getting an ad on Zillow or Craigslist. You really want to position this property as a rental for 2018 with no income. You won’t take the loss but it will carry over. If you consider it not a rental you will lose some key deductions permanently. Specifically your non capitalized acquisition costs and recording and other taxes

 

[stephenson]

I didn't RENT it until 2019 ... thats what I meant by up for rent ... sorry.

I tried to rent myself starting day after we closed, two days to clean - listed on craigslist and with cards in the area - gave up in January and listed with an agent and it was rented mid February.

 

[Another Reader]

It was available for rent in 2018. End of story.

 

[stephenson]

Got it - thanks. Makes sense!