I bought a condo in early 2021 and lived there for a year. I moved out of the country and subsequently rented it out to a family member. I do not have a rental agency. To pay the rent, I have them send me the rent via Venmo, as it was the easiest option. They have been renting since 2022. As I was renting it out at a total loss of $200 a month, I was unaware that I had to report the earnings on the property as I wasn't earning anything. I also just learned about the 1099-K from Venmo for payments over $20,000, but have yet to receive one. I am looking to buy another property and in working with the VA Loan officer, they asked for W-2's and found I had not reported my rental earnings and would need to fix this in order to qualify for another loan. How do I go about reporting a 2 year rental property on my taxes?
You will need to amend both the 2022 tax return and the 2023 return to add the rental property income and expenses on a Schedule E. You will also have to add the rental property as an asset that has to be depreciated over 27.5 years.
See this TurboTax support FAQ for amending a prior year tax return - https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/amend-change-correct-return-already-filed/L4VjJ9BA2_US_en_US?uid=ld1n99kr
"I moved out of the country and subsequently rented it out to a family member."
Did you rent to them at FMV (full market value)?
Just a reminder that, if you rent to relatives below FMV, then every day the relative rents the property is considered a day of personal use by you. If you exceed 14 days of personal use, then the IRS does not consider the property to be rental property, and you lose all deductible expenses except mortgage interest and property taxes.