Rental with no activity

Forum|Forum|4 years ago
April 18, 2022
2 replies
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So we just started in the rental space - in 2021 we purchased a new home, but kept our old primary residence with the intention of renting it out. This all occurred at the end of the year in 2021. The old property had not even been put on the market to rent until March 2022.

I'm getting thrown off by what I should be actually listing/tracking/disclosing etc? From a traditional standpoint, there is plenty of Mortgage Interest to write-off on the old property, but since it was end of year, the new property has minimal. Aside from paying two mortgages, in 2021 there were really no expenses or income related to the old property from a rental perspective.

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ColeenD3

Your old home is not a rental property until it is placed in service. No rental expenses are allowed until that point in time.

ATwoZAuthor

Thank you -

From a 'TurboTax' perspective my understanding is that the old home stays as the Primary Residence with associated Mortgage Interest write-offs etc for 2021, and the new home that was purchased is marked as a "Second Home" as it was not permanently occupied in 2021, and then any associated points, mortgage interest logged as well.

Does that sound right?