@Carl here are some of the answers - please let me know if I missed anything. I am working full time with a W2.
1. This is my only primary condo and I was living here till Aug 21, 2019. I advertised it for rent on FB, Craigslist in June and started renting out from Aug 21, 2019 to 2 girls (2 separate lease).
2. I made some Property improvements before Aug - bathroom remodel, kitchen update around 20,000.
3. Maintenance - been paying handymen on and off for basic repairs toilets, fridge, washer etc. I buy the parts and they repair for a fee.
I have a HOA fee $520/month includes landscaping, gardener, common pool maintenance, outside painting, decks, water, garbage, earthquake and roof insurance etc. - can this be included in my maintenance?
4. In between renters - I have got the condo cleaned by cleaners for a fee.
5. From 2019 till date I have filed using a tax preparer because I was not sure how to handle this rental situation.
In 2021 she filed Sch E - Expenses include Auto, Home Insurance (which I read your advice- I should change to Rental dwelling Ins), Mortgage interest, repairs, Taxes, Utilities that I am paying (internet etc), Depreciation Expense - with a loss of around 10,000 on line 21.
6. Also filed in 2021 Form 4562 Depreciation and Amortization with MACRS Depreciation about 14K (included in Sch E).
7. Form 8582 Passive Activity Loss Limitations - she added the 10K net loss from Sch E, Prior years unallowed losses 2K, total 12K loss.
8. I filed for DBA with EIN because I thought I can use all these expenses like buy a car, laptop, gas, repairs, rent where I am currently living, etc as deductions and reduce my taxes further. But I suppose these are all going into my Sch E and I cannot use the DBA for this?
9. If I want to buy another property and rent it out will I be able to use this DBA?
I thought I could get additional deductions using DBA and it would be better for my taxes - because many friends doing different businesses advised me so.
Again I appreciate all your advise - it is so helpful for me starting off.
