Investors & landlords
You are required to report the rents you received for the two months it was rented. However, you cannot depreciate property that was placed in service and removed from service in the same year. This makes things more simplified now and in the future when you sell this property.
On your tax return you can enter rental income for the two months and take a prorated share of taxes, interest, insurance, repairs or other expenses. The amount would be 60/365 or 16%. You could also decide to report other income without taking deductions or entering a rental property.
Rental Income:
- Select Tax Home > Income > Rentals, Royalties and Farm > Start beside Rental Properties and Royalties
Other Miscellaneous Income:
- Go to the Income section of TurboTax
- Scroll to Less Common Income > Select Miscellaneous Income, 1099-A, 1099-C
- Select Other reportable Income > Enter a description (----) and the amount
