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Get your taxes done using TurboTax
It should be reported in the manner as Vanessa A has outlined above. After you have listed the rental income and recorded the expenses, the program will determine rather or not you have a profit. As Vanessa mentions, you may deduct expenses up to the amount of rental income
You would list it this way because this type of reporting is what the IRS requires to report rental activity because of the depreciation involved in rental activity. A record of depreciation is necessary in case if you sell your property later because depreciation recapture is used by the IRS to collect taxes on the sale of an asset that a business had previously used to offset its taxable income through the years.
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‎February 22, 2023
5:14 AM