USA Condo Fees and Rental Property insurance deduction mechanics


Joined
Nov 8, 2018
Messages
1
Reaction score
0
Country
United States
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!
 
Ad

Advertisements

Joined
Jun 16, 2017
Messages
96
Reaction score
12
Country
United States
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.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top