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Tamara Said:

Which of the following statements is TRUE with respect to property insurance?

We Answered:

A) FALSE : The Premium is the amount that the insured pays TO the Insurer
B) TRUE : In such cases the insurer then takes over the right of action to sue the third party - this is called SUBROGATION
C) FALSE
D) FALSE : you can insure any property provided you stand to lose if it is destroyed or damaged.
E) FALSE : In general you cannot insure property that is owned by another person as you do not have an INSURABLE INTEREST in that property (see my answer to D)

Sidney Said:

I got my first 1098 and it has no property tax. Can I claim the property tax paid as reserves during closing?

We Answered:

Property tax in the year of purchase is the sum shown on the settlement statement + any amount paid out of reserves. The amount on the settlement can either be a positive or a negative, depending on whether it was added or subtracted from your setlle up. So be careful with that.

Insurance premiums are not deductible.

Private mortgage insurance premiums may be deductible if you qualify... most do not.

Mitchell Said:

Need help with tax return and rental property?

We Answered:

You will need to pro-rate the amount of taxes & mortgage interest and report the appropriate amounts on the Schedule E (rental) and Schedule A (personal).