If a new home owner bought a two family house and tried to rent one of the units and live in the other unit but was unable to, Do you recommend they apply for rental loss using schedule E? If so, What would they put on Rents received, repairs, supplies, utilities and depreciation expenses sections if they never rented one of the units before as a first time home owner. What is the likelihood they would get penalized or audited for using schedule E??
