Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Income — Rental and Schedules K-1

Rental Income and Expenses

Topic Activity

Tax Your Memory

Florence incurred several expenses for her rental property, which she rented out all year. Determine whether and how she can recover each of the costs.

Type a number in each blank to indicate how to recover each expense. (Some numbers may be used more than once or not at all.)

How to Recover Expense: Expense:
1. Take full deduction on Schedule E for current year Match Insurance premiums paid in advance
2. Split deduction on Schedules A and E Broken window replacement
3. Pro rate on Schedule E over more than one year Mortgage interest
4. Depreciation on Schedule E Property tax
5. Cost cannot be recovered New cabinets
  1 month unpaid rent