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July 15, 2023
Question

Rental Property

  • July 15, 2023
  • 1 reply
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We rent a couple of rooms in our house, and last year (2021) we showed a net loss of $656 on income of $4901. This year (2022) TT says on income of $8499 we have NO losses, but an "Operating Expense Carryover" of $3828. Why isn't this a loss this year?

    1 reply

    July 15, 2023

    there are many limitations when a home is used personally and parts are rented.

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    since we can't see your return, this seems to be your situation. the rental portion of interest and taxes are fully deductible. other expenses after proration between personal and rental are limited to any remining rental income. the excess is a carryover.