Thank you for your response,
below is the article I am most curious about. Will my rental fall under these restrictions? In Publication 527, under the article dwelling used as a home. Or would my situation not qualify?
“Limit on deductions.
Renting a dwelling unit that is considered a home isn’t a passive activity. Instead, if your rental expenses are more than your rental income, some or all of the excess expenses can’t be used to offset income from other sources. The excess expenses that can’t be used to offset income from other sources are carried forward to the next year and treated as rental expenses for the same property. Any expenses carried forward to the next year will be subject to any limits that apply for that year. This limitation will apply to expenses carried forward to another year even if you don’t use the property as your home for that subsequent year.
To figure your deductible rental expenses for this year and any carryover to next year, use worksheet 5.1”
