Question 1 - I followed your advice reporting one day of rental use to maintain the fixed asset schedule and TT prepared a Schedule E. I reported no days of personal use. I had 2023 expenses of insurance, condo fees, marketing, assessments, professional fees and replacement furniture purchases. When I entered those expenses in TT, the resulting Schedule E reflected those expenses and produced a loss which was carried forward as a suspended loss. Is this correct? If not, what do I do about the money I spent for the condo in 2023?
Question 2 - I received insurance proceeds in 2023 for loss of personal items. I have not purchased replacements yet except furniture that I ordered in 2023 but have not yet received. I plan to replace the other items during 2024 and they will cost more than what I originally paid and the insurance proceeds I received. In 2021 when I purchased the items I used the De Minimis Safe Harbor election. I realize they now have 0 basis. How do I handle all this?
Thank you for any guidance.
