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

[siebertclan]

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? 

[Carl]

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

[Anonymous_]

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@siebertclan wrote:

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

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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.

[siebertclan]

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...

[Carl]

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.

[siebertclan]

After reading this I am more of an active participant....   (But what I need help w is HOW DO I GET AROUND IN TT TO BE ABLE TO ADD THIS CAMPER RENTAL BUSINESS AND THE CAMPER AS AN ASSET?  The way I tried it before it was trying to input it as real estate and that's why it tried to give me the 25year depreciation!  How do I get where I need to be in TT so I can get all info entered correctly?)

Active participation.

You can meet the active participation requirement without regular, continuous, and substantial involvement in real estate activities. But you must have participated in making management decisions or arranging for others to provide services (such as repairs) in a significant and bona fide sense. Such management decisions include:

• Approving new tenants,

• Deciding on rental terms,

• Approving capital or repair expenditures, and

• Other similar decisions.

[Anonymous_]

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@siebertclan wrote:

HOW DO I GET AROUND IN TT TO BE ABLE TO ADD THIS CAMPER RENTAL BUSINESS AND THE CAMPER AS AN ASSET? 

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It belongs on Schedule C, not Schedule E. That is the reason you are running into this issue.

[siebertclan]

How do I answer the TT questions to get where it lets me complete the Schedule C?  I keep getting told that I need the schedule C but no one tells me how to answer which questions to get me there in TT! 

[AnnetteB6]

Use the following steps to get started with entering Schedule C Business Income and Expenses:

• On the top row of the TurboTax screen, click on Search  
• This opens a box where you can type in “schedule c” 
• The search results will give you an option to “Jump to schedule c”
• Click on the blue “Jump to schedule c” link 

The first several questions will pertain to general information about your Schedule C business.  Later you will have the opportunity to enter business expenses and assets for depreciation (such as the camper itself).  

@siebertclan