In June 2018 I purchased a condo in Orlando to rent out on a short-term basis for visitors to Orlando. After closing on the condo I upgraded the interior (ripped out carpet and installed tiles, painted the whole condo, installed granite in the kitchen and baths, installed backsplash in the kitchen, and completely furnished the condo, etc.). I hired a property management firm to handle the rentals and it was made available for rentals in August. Based on this scenario, which are the related Federal Tax forms I should use for filing my 2018 taxes? Thank you.
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You will enter your rental on Schedule E. If this is strictly a rental with no personal use, it is fairly straightforward. If it is used for both personal and rental, it is a vacation home and subject to certain rules.
https://www.irs.gov/taxtopics/tc415.html>
Enter your information under the Rental Section. Your basis is your purchase price plus the cost of the improvements. The furniture will be separate as it will definitely not last 27.5 years. You may want to list each piece separately, so if it gets destroyed, you can remove it from service and purchase a replacement and depreciate that one as new.
Steps
Go into your TurboTax return.
If you're also filing a nonresident state return to report income from an out-of-state rental property, be sure to complete your nonresident state return before you prepare your resident state return when you get to the State Taxes section.
You will enter your rental on Schedule E. If this is strictly a rental with no personal use, it is fairly straightforward. If it is used for both personal and rental, it is a vacation home and subject to certain rules.
https://www.irs.gov/taxtopics/tc415.html>
Enter your information under the Rental Section. Your basis is your purchase price plus the cost of the improvements. The furniture will be separate as it will definitely not last 27.5 years. You may want to list each piece separately, so if it gets destroyed, you can remove it from service and purchase a replacement and depreciate that one as new.
Steps
Go into your TurboTax return.
If you're also filing a nonresident state return to report income from an out-of-state rental property, be sure to complete your nonresident state return before you prepare your resident state return when you get to the State Taxes section.
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