We are married couple who purchased a condo in Colorado and live in this property for the entire 2021. We opened a LLC and rent out the guest bedroom & bathroom for monthly stays shortly after we move in. My spouse is the housekeeper and provide service such as cleaning the bedroom & bathroom daily, changing linens weekly, do their laundry and serving meals occasionally. My spouse also build a dedicated work space in the living room to run a small online business. For the 2021 tax year, I filed 50% of the purchase price of this property as depreciation asset in schedule C.
This year my spouse got a job and we did not provide the B&B service. She only continue to run her small online business. In August, we bought a new house and moved out of the condo. We listed the condo as short term rental on Furnished Finder since then, but we were not able to secure a tenant until November. So the condo is only generating passive income for 2 months in 2022.
My question is, for tax year 2022, can I file the condo under Schedule E as rental property?
I am confused because I have filed the condo as depreciation asset in Schedule C last year.
Thank you and appreciate your advice.
