You would not need to report the property until you begin receiving rental income or it is considered to be placed in service.
Placed in Service
You place
property in service in a rental activity when it is ready and available for a
specific use in that activity. Even if you aren’t using the property, it is in
service when it is ready and available for its specific use.
Now
let's enter that rental:
- In TurboTax, search for rentals and then click the
"Jump to" link in the search result.
- Answer Yes to the question Did you
have any rental or royalty income and expenses?
- Follow the on-screen
instructions as you proceed through the rental and royalties section.
- We'll first ask you to enter
general information about your rental (description, address, ownership
percentage, etc.)
- Eventually, you'll come to
the Rental Summary screen which is where you enter your rental income and expenses,
assets and depreciation, and vehicle expenses.
Tip: Rent is considered income in the year you received it, not the year it applies to. This
means that a rent payment for the month of January 2018 collected in December
2017 is reported on your 2017 return.
