On the "Do any of these situations apply to this property?" screen, assuming 2021 was your first year there are three selections that you must make.
- 2021 was the first year I rented this property
- I rent out part of my home
- I converted this property from personal use to a rental in 2021
Then on the screen "Was this property rented for all of 2021?" you need to (I can't stress this enough) ReAd ThE sMaLl PrInT, because it DoEs MaTtEr big time. Enter your days rented. Days of personal use will be zero. Again, read the small print and understand the question only applies to the room or portion that is exclusive to the renter. So your days of personal use will be zero.
For home office, you do not have a home office. A home office is not allowed for rental property in your case.
On screen "Let us calculate your rental deductions for you" select YES. Then below that will appear the box for entering what percentage of your floor space is exclusive to the renter.
When you are all done, check the form 4562 and most likely, you'll find that the depreciation amount is wrong. We'll deal with that later. You need to get past this point first.
