I am a real estate professional. I talked with a Lawyer/CPA last year and he agreed that I can use my rental house as a business office for real estate sales for 5 months out of the year and then have the house available for rent the otlher 7 months out of the year. It advertise for rental while marketing and working on real estate in the summer so that fall/winter and spring get booked. Last year real estate income was really low because this property is in a new area but the rental did well in the fall/winter/spring.
I spent a lot on real estate ads and marketing during that 5 months as well as networking and meeting people to generate business and when I go to my primary property in Scottsdale for 7 months, I try to sell there as well. I have a big loss in real estate and little income.
I keep my rental funds for the 7 months it is rented in a separate account and have a separate spreadsheet as a real estate professional.
I am already stuck at the business income page. Should I enter my real estate low income and all its expenses there and my rental on a Schedule E? Where will it ask for the Schedule E?
As a real estate agent on some of the listings (sometimes VRBO) of most of the rentals I only act as a landlord with all of the tenants.
Can you advise which area of the program I need to use to enter each of the incomes keeping rental separate from real estate?
