Camper purchased to rent out but made no income the first year. I cannot get TT Premier to let me put in any expenses!

Forum|Forum|3 years ago
March 12, 2023
3 replies
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I've researched the community resource pages/blogs. All suggestions I've seen, I have tried. Under 'Business Income & Expenses' I chose Rental Properties and Royalties-- I also saw that I'm supposed to be able to add my RV if I choose Tools/Machinery but TT never takes me to a special asset page to be able to add the camper there for the 5 year depreciation that I keep reading about. When I go to enter my expenses it tells me that my expenses cannot be greater than my income. Well I just bought my camper in '22 and I had it rented out on Outdoorsy but that first rental date isn't until April '23. Plenty of people buy/open businesses during a tax year and make no income but they have expenses in the year they purchased that business. Why is TT making this so difficult for me to input this info? What am I doing wrong? I've searched high and low and I'm at a loss. Please help me! I'm pulling my hair out.....

KrisD15

To clarify,

are you involved in the rental where it would be considered Schedule C income (Self-Employed) or is it passive income, more like a true rental where you spend a minimum amount of time and energy on the project?

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siebertclanAuthor

I'd say it'd be considered more of a rental / passive income. No matter what I do in TT, it never lets me put in the camper as the asset with the 5 year depreciation like I've seen other TT users say TT let them do. I've tried what others have posted.... tried finding the 'tools/machinery' so I could input the camper and get the 5 yr depreciation. Can't find it. No matter what tips I find on TT blogs I cannot get TT to do what they say. I've only been able to find the real estate rental part in TT, which I know is incorrect. I have an online Windows download, not the CD version--not sure if the online version is less user friendly? Maybe TT is just having some technical difficulties with a newer version than what all the other TT users have been able to input camper rental in? I mean, people start businesses and buy rentals all the time that make no money the first year. I wouldn't think it'd not let me have ANY deductions just because I made no income the first year. I did have a reservation booked for it last year for 2023. I need guidance in how to get this input into TT Premier. I've wasted so much time with this already. Please help...

Carl11_2

Employee

I'd say it'd be considered more of a rental / passive income.

It's already been made quite clear by the IRS at https://www.irs.gov/instructions/i1040se#en_US_2022_publink24332td0e847 that a vehicle rented out does not get reported on SCH E.

Do not use Schedule E to report income and expenses from the rental of personal property, such as equipment or vehicles. Instead, use Schedule C if you are in the business of renting personal property.

Carl11_2

Employee

I could be wrong. But I would expect this to be a SCH C business. Not SCH E.

Anonymous_

Employee

@siebertclan wrote:

Under 'Business Income & Expenses' I chose Rental Properties and Royalties......

Wrong choice. A camper is not rental real estate, so the income and expenses generated from the rental would not be reported on Schedule E.

See https://www.irs.gov/instructions/i1040se#en_US_2022_publink24332td0e847

Personal property.

Do not use Schedule E to report income and expenses from the rental of personal property, such as equipment or vehicles. Instead, use Schedule C if you are in the business of renting personal property. You are in the business of renting personal property if the primary purpose for renting the property is income or profit and you are involved in the rental activity with continuity and regularity.