Hello,
We purchased a cabin as an STR in 2022, as part of a 1031 exchange (sold one property and purchased two, in different states). We have had major expenses/losses with the property, but apparently can't write off all the expenses (TT desktop is recommending the standard deduction which is only 1/2 our expenses).
We did not know to take the section 179 depreciation last year, but we just learned we can adjust our depreciation using cost segregation. I have several related questions:
- Because our taxes were complex in 2022 (I use the desktop version of TT for home/business), does it make more sense to amend that return, or is it better to file a 3115 for this year instead? (this year is much simpler, tax-wise)
- Do we have to pay for a service to do the cost segregation study or can we do this in TT (or some other way; maybe the IRS instructions)?
- If we decide to do the 3115 change in accounting method, do I have to delete everything I already entered in TT (income/expenses) or do I just enter the amount as a "miscellaneous" expense and attach the 3115 pdf?
Thanks so much! We are new to the STR market and it has not been an easy transition from long-term rental property management.
