This is my first time filing taxes since we converted our home into a rental property, and some of the instructions are confusing to me. As a little background, the home was our primary residence until August of 2022 when the renters moved in. We hired a property management company to manage the property. Looking for clarification on the following:
- Do we still count as "Active Participants" even though the property management company handles the tenant application / approval process and all small (<$500) repairs / maintenance without our input? How does the classification as an Active Participant specifically affect our taxes?
- How do I know what expenses I should be including as deductions? The property management company, for example, had a handyman do some minor repairs / maintenance at the rental property in 2022. They paid the handyman and this was billed back to us and shows up on the year end statement they provided to me as "Maintenance: General Repairs". Can I enter this type of thing as an expense?
- When entering real estate taxes paid on the property, should I just put the total amount shown on the 1098 we received?
- When entering the mortgage interest, it's asking me to check a box indicating either Qualified or Non-Qualified Interest. I initially assumed Non-Qualified because it is a rental, but technically I lived at the property for over half of 2022. Do I need to divide the total interest paid (as listed on the 1098) into two portions to represent both individually? If so, does the Qualified Interest automatically reflect under my personal deductions and credits?
- Similarly, I didn't enter anything for Qualified Mortgage Insurance, because I was confused by the Qualified vs Non-Qualified. How would I handle this field?
