I don't think we meet the requirements for a Schedule C business. (I don't know what they are).
We bought the place in Oct 2018 as a vacation place to rent out till we retire in a few years. The place was empty. We spent $10,000 to furnish it and for supplies so someone could live in it as a rental. It cost us about $4000 to fly down there 3 times, rent a car and hotel room. It was ready to live in and rent in Dec. 2018, but we didnt get a tenant till Jan 2019. (We could declare it not ready till 2019 as you said). The tenant paid us about $8k to rent it.
The Turbo program said we had a $0 deduction. I presume that is because of our income over $150k.
It also said we could not deduct mortgage interest because we were "over the $10000 limit", whatever that is.
I saw no place for depreciation .
Should we just deduct the $14k expenses from the 2019 income?
Should we try to depreciate the property somehow?
Should we put the property into a LLC to avoid the $150k phase out limit on passive rental deductions?
