I need confirmation if I should file my rental property in '19. The lease started in Nov., but I didn't receive any income until 2020 (first rent went to realtor)

dlaprea · ‎February 5, 2020

JohnB5677 · ‎February 6, 2020

Yes, You should start posting your Rental in 2019 if that is when it went into service. The income will still be that first month rent, but you can take the expenses and start depreciating the property.

It is very important to depreciate the property from the very beginning. First, you get a tax break, but when you sell the property the IRS will add all of the depreciation back WHETHER YOU TOOK IT OR NOT.

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Hal_Al · ‎February 6, 2020

If a rental payment was received, in 2019, even if it went directly to a realtor, you had gross rental income in 2019 and must report it.

The unit was considered placed in service when it was available to rent.

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I need confirmation if I should file my rental property in '19. The lease started in Nov., but I didn't receive any income until 2020 (first rent went to realtor)