Originally posted by @Ryan E.

Tax Question about deductibility of an annuity surrender charge in 2017.If an annuity is cashed in to buy rental real estate and there is a large surrender charge, can that surrender charge be deducted on:(1) Schedule A as a misc itemized deduction for 2017, or(2) Schedule E as an expense to acquire financing to buy rental properties?

@Derek E.

@Trexie E. 

When you know the facts (like if this is a good investment or not, if it would cashflow, what is the best strategy to use in such a case) you will be in a better position to decide if you even want these properties.I would also recommend you, or your family members, read @Mindy Jensen's book about selling a home, available on Bigger Pockets. https://www.amazon.com/Mindy-Jensen/e/B078NHMXVTGood luck!

Of course, with e lower end finish you can pay less. 

Rental income and expenses go on schedule E.

. , If you will not have an LLC, you will report the activity of two duplexes on Schedule E of 1040. 

Specific repair projects and supplies, maintenance that are property specific are listed on the Schedule E for each respective property.

Originally posted by @Trexie E.