Per IRS Instructions, a not-for-profit rental home that has not had a loss in the past 5 years is considered a "for-profit" rental. However, T Tax asks me to enter the number of days that the home was rented out at fair market value (which is 0) and the number of days it was rented out as "personal property" which would be 364 days, according to the T Tax instructions.
Since the IRS would consider this property as a "For-Profit" now, I need to use schedule e but, because of the requirement in T Tax to list the # of days at fair market value, I cannot use schedule e unless I (incorrectly) list the number of days that the home was rented out at fair market value as 365. Am I allowed to do this and how would I inform IRS why I did it?
Also, since it's considered a "for-profit" rental now, can I deduct the repair expenses since they did not exceed the rental income?
