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Updated almost 8 years ago,
deduct insurance for partial year rental
I am running into a problem finding this number.
Let's say my property converted from personal to rental in June. I cancelled the regular home owner insurance around June, to purchased a new policy that is rental insurance (mostly, it's a fire insurance).
So there is 2 policies that needs to be pro-rated (home owner, and rental policy). Do I just deduct the insurance for the rental period (June - end of year)? I am just having trouble coming up with the pro-rated number, it's probably like $150 and I don't want to get audited having to proof the number.
Am I better off not deducting anything in this field?
Or do I enter the total expense insurance (both policies pro-rate) and the IRS formula will proportion them based on # of days?