Where did you enter the income? Did you enter it as rental or self-employment income? It should be reported as rental income on Schedule E, not self-employment income on Schedule C.
Because you are renting it to your daughter without the intention of making a profit, you can deduct can deduct expenses up to the amount of income you are reporting but you cannot deduct expenses in excess of the rental income and you cannot carry forward any losses.
To enter your rental income so that it is reported on Schedule E take the following steps:
- Federal
- Business Income
- Rental Properties and Royalties
- Start
- walk through and answer the questions
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