Net income zero on rental property

[dashrader]

In 2023, I moved from my primary house to my rental and rented out my former primary house.  For the first time ever, i think, the net income is zero...for both.  Is this normal?  It doesn't seem right.  Is there some carryover that will be applied to 2024 taxes?

[KrisD15]

For tax year 2023 you will need to enter the expenses and income for the rental, then report that the rental was converted to personal use. 

Any Depreciation Recapture and/or Capital Gain will be claimed when the property is eventually sold. 

For the new rental, you will report that it was a personal residence converted to rental use and report the basis (your cost or Fair Market Value, whichever is less) expenses and income. 

If the loss is more than the income, you might have a loss reported or the loss may be limited depending on your income and participation.