Case Study 2: Rental Expenses
Sergeant Paul Kingman lived in his home through September, when he was notified he was being transferred overseas. He rented his home out beginning in October. The total amount of Sergeant Kingman's mortgage interest for the tax year was $2,400 and his property taxes were $600.
How much of that amount should you enter on Sergeant Kingman's Schedule A and how much on Schedule E?
You should report nine months (January through September) of Sergeant Paul Kingman's mortgage interest and property taxes on Schedule A and the other three months (October through December) on Schedule E.
For his mortgage interest:
For his property taxes: