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Brian Michels
Brian Michels, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 158
Experience:  Partner at Michels & Hanley CPAs, LLP
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Im preparing my 2016 1040 and have a questions regarding how

Customer Question

Im preparing my 2016 1040 and have a questions regarding how to report the both the rental portion and personal portion of the mortgage interest and real estate taxes. I have rental expenses that I would like to report but uncertain how much when I read the IRS regulation regarding limitations.
Submitted: 2 months ago.
Category: Tax
Expert:  Brian Michels replied 2 months ago.

Hello. My name is ***** ***** I'll be the Expert assisting you today. I look forward to helping you with your issue today. 1) Divide your property taxes between the "residence" and "investment" parts of your property. For example, if you paid $4,500 in property taxes and own a duplex, you would probably allocate $2,250 to the residence half and $2,250 to the investment half. You can utilize a ratio of square footage of rental square footage vs. personal use square footage. If its not an apartment and you rent the house out you can allocate it based on the number of days rented. Bear in mind that you should usually allocate the property taxes using a similar allocation to what you use for your mortgage interest. 2) Enter the residential portion of the property taxes on line 6 of your Schedule A. 3) Enter the investment property portion of the property taxes on line 16 of the column corresponding to your property on Schedule E.

Expert:  Brian Michels replied 2 months ago.

I wanted to follow up and see if you had any further questions. If you have questions I am happy to assist. If you have no further questions I would greatly appreciate your 5 star rating so I receive credit for my responses. Thank you.