long term rental turned into a sublet

Forum|Forum|2 years ago
October 24, 2023
1 reply
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In 2022 we rented a house with the intent of moving into it. The rental rate was low and we have it on a long-term lease. The rental was so low because the property needed major repairs and we rented it with the understanding that we would not only be responsible for these repairs but would be responsible for all the repairs. We only agreed because of the long-term lease and low rental rate. The property is part of a family trust and can not be sold and the trust managers do not have the time or desire to do anything, that's where we came in. We spent about 8k in 2022, and then another 10 in 2023. Now, our situation has changed and we have sublet the property. We filed our taxes before all of this came to a resolution. Now, we feel we need to go back and account for these expenditures in 2022 and 2023. We understand we can not take a loss for 2022, and will not have enough income for 2023 to offset all the expenses this year. What I am trying to figure out is if I have missed something.. is there some way to carry these expenses forward so we do not get hit with additional income in future years, it will take us 4.5 years at the current rental rate to recoup our losses. Also, do I need to amend 2022 to include these expenses?

Not A Product Question

Anonymous_

Employee

Regardless of the situation with the trust and any other related issues, you would not be able to deduct costs of repairs during a future tax year (costs of repairs are deducted in the year they are paid unless they are able to be capitalized (which would not apply here)).

In any event, you are renting the property and are not the owner.