turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

For my rental property, my net income is in the negative, is this normal? This is my first rental and didn't rent till last week of Dec of 2017.

 
1 Reply
ToddL
New Member

For my rental property, my net income is in the negative, is this normal? This is my first rental and didn't rent till last week of Dec of 2017.

It is common to show a net loss on rental property, even if you have a positive cash flow

Many of your rental expenses are fixed monthly or annual costs (e.g. mortgage interest, insurance, depreciation, etc.); if you only had one week of rental income, a loss would likely be expected.

Even when your cash flow is positive, you can also show a rental loss on your tax return. The reason for this is depreciation expense. You get a deduction for depreciation even though it isn't a cash expense. The more valuable the property is, the larger the depreciation expense will be. 

Manage cookies