Rental expenses being reduced

Forum|Forum|2 years ago
April 3, 2024
2 replies
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My each of my rental expenses are being reduced so the total exactly equals my rental income. Why?

Rental Property

AnnetteB6

Review the information that you entered in the Property Profile section for your rental property. It could be that the number of personal use days are affecting the calculations.

If you converted the property to a rental from personal use or vice versa, keep in mind that personal use only counts if the property was used personally while it was being used as a rental property.

Days of personal use prior to converting to a rental and days of personal use after it was converted from a rental do not count and should not be entered.

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Carl11_2

Employee

If you are reporting as a "not for profit" activity, then carry over/suspended losses are not allowed. Once you're rental expenses gets your taxable rental income to zero (and it will) that's it. You're done.

kangshani

How do I change it to "for profit"?

PatriciaV

Employee

A rental property can be considered to be "not for profit" if you aren't charging fair market rent. You might revisit the Rental Property interview questions to see if you can revise your answers to the fair market rent questions.

@kangshani

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