I have couple of questions regarding rentals...
1. Is my Rental income Passive or Non-Passive? Am I considered an active participant? Scenario - I have to rental properties - a condo and a townhome. I have a property manager for the condo and I fully manage the other rental property. For both rentals, I make decision regarding selecting tenants, rent price, appliance selection and etc.
2. Regarding home insurance, how do I expense the cost. Scenario - If my payment in a tax year spans across two calendar years, I can expense the full amount in the year I'm made the payment. For example, if my home insurance payments is $600 from September 2019 though August 2020 and $800 from September 2020 through August 2021, for tax year 2020, I can expense the $800 and not have to calculate each month cost to derive the expense. Is that correct?
Thanks for your forthcoming response.
