We converted our property from personal use to rental late last year - 182 personal use days and 51 fair rental days. We received $2,965 in rent, but had to make some repairs of $5,396 after our tenants moved in, and our cleaning/maintenance expense for the whole year was $9,683 (HOA dues). When I put in the numbers, these two categories don't change any of the federal/state refund numbers and don't show up in Schedule E.
But when I put figures in the other categories, such as management fees and real estate taxes, they change the federal/state refund numbers and also show up in Schedule E (in the case of real estate taxes, they are pro-rated for fair rental days vs personal use days). Shouldn't the Cleaning/Maint show up as a prorated amount of the yearly amount in schedule E, and the Repairs show up also? Or are those categories not allowed to be added to the expenses for some reason?
As a test, I added the Cleaning/Maint and Repair amounts and added them to the management fees category, it seemed to change the tax refund numbers and show up in schedule E.
