@FortuneCookies wrote:
YR 2022 - started rental in 08/2022 - form 4562 business use 42%
That is where you made the mistake. It should show 100% business use. It was 100% business use starting on 8/2022. You were not supposed to manually enter 42%.
TurboTax would take the 100% and automatically prorate it based on the months (4.5 months). It seems like you manually entered 42%, in which case TurboTax then FURTHER prorated it be the partial year. In other words, it seems like your 2022 return was also wrong.
