So, I have "not-for-profit rental".
In Pub 527 it's written:
- "Report your not-for-profit rental income on Schedule 1 (Form 1040), line 21"
- "If your rental income is more than your rental expenses for at least 3 years out of a period of 5 consecutive years, you are presumed to be renting your property to make a profit."
In TT, to report "not-for-profit rental" I just add "Other taxable income", like this: "Not-For-Profit Rental - $X". I don't fill out the Schedule E, nor deduct any expenses, becasue I'm doing Standard Deduction. I can't deduct expenses becasue it's not for profit and therefore "personal property".
Anyway, how the IRS will know if my "rental" was profitable or not? It doesn't know if I had profit, It doesn't even know the address of the property to check if it's indeed under the market value. It doesn't know how many days was this property rented. I don't understand how "Presumption of profit" works.
