my rental prop. was vacant a while, and ex wife lived there 5 mon. can i claim 3 month rent paid and big loss?

Answer 1

If your ex wife lived in the property and not paid fair rent it stopped being rental property. This is because you used it for personal purposes for greater of 14 days or 10% total days it rented at fair market value.

This will limit the deductions you are allowed on your property. See the instructions on Schedule E and Publication 527 "Residential Rental Property" and use the rules for reporting rent on a vacation home for details on the expenses that are allowed and are not allowed.

Answer 2

If your ex didn't pay rent, you cannot deduct the expenses related to the time she occupied the property. You must receive fair market rent to be able to deduct your expenses.

Answer 3

Generally, you cannot deduct losses from rental real estate activities unless you have income from other passive activities. However, you may be able to deduct rental losses without regard to whether you have income from other passive activities if you “materially” or “actively” participated in your rental activity, as a real estate professional.

Your losses will carry over until you have rental or other passive income, or until you sell the rental property.