USA Condo Fees and Rental Property insurance deduction mechanics

[mlewisneedshelp]

Hello,

Last year I bought my first rental property. It is a condo and my tenants are long-term. I have two bills that are paid annually: rental property insurance and the condo association fees. While those two bills are paid annually, they do not directly coincide with the tax year....so my question is...can I deduct the full amount this calendar year or should I prorate the deduction for just this year?

Example:

Check 1008 of $360 paid my insurance premium running from June 18 to June 19....Do I deduct all $360 this tax year (2018)?

Thanks!

 

[AGH the CPA]

depends on whether you are cash basis or accrual basis business.

cash basis, yes.

accrual basis the proper thing to do would be to record a prepaid insurance account for the 2019 portion.