Rental income is reported on Schedule E and this article explains how to report the below article explains how to report the rental income and expenses would typically be entered by following the below steps.
To enter your rental income and expenses:
- 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.
Where to Enter Rental Income and Expenses
Real Estate Rental Property
However, in your case you were living in the property during 2021 and you incurred expenses in getting the property ready to rent. Expenses incurred in preparing the property for rent for the *very* *first* *time* are not deductible. DO NOT confuse this with property improvements.
Basically, repair and maintenance expenses incurred "before" the property is placed in service are just flat out not deductible. That would be things like utility bills, lawn care, fixing the broken garage door because it won't open, etc.
The property is in service on the first day a renter "could" have moved in. That is also the same day the "days rented" count starts. This is usually the day you put the FOR RENT sign in the front yard. If on that day a potential renter walked up to you with the deposit and first months rent physically in their hand, gave it to you and you accepted it and they could starting moving in at that very minute, then the property is "in service" on that date.
Unless the above scenario is what occurred you do not have fair rental days for 2021, you are not able to deduct the expenses of getting the property ready to rent, and since you lived in the property for all of 2021 and the property was not rented for at least 15 days, income from this property does not need to reported in gross income for 2021.
The renting of the property does not begin until January 2022 and in this case I would report the income with your 2022 taxes.
