Yes, you understand 1-4 above.
Yes, this will be a passive activity loss for 2022. You may be able to use the loss depending on whether you meet the criteria next. Any amount of the loss that is not used would be carried over to 2023.
Phaseout Rule: The maximum special allowance of $25,000 ($12,500 for married individuals filing separate returns and living apart at all times during the year) is reduced by 50% of the amount of your modified adjusted gross income that’s more than $100,000 ($50,000 if you’re married filing separately). If your modified adjusted gross income is $150,000 or more ($75,000 or more if you’re married filing separately), you generally can’t use the special allowance. This is because the special allowance is reduced to $0 since the modified adjusted gross income is over the $100,000 amount.
- Sign into your TurboTax return > Search (upper right) > Type rentals > Press enter > Click on the Jump to... link > Edit next to the Rental Activity > Edit next to the Property Profile or General Info > Continue to the question about active participation
- Continue to the end of the section for TurboTax to save your changes.
If the tenant paid the commission to the realtor (your property manager?) that you were liable for, it is rent to you. If it was your property manager, then you will also have an expense on your rental activity for that expense.
@narayananvm
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