Rental property?

[bvi1998]

Hi, we purchased a 2nd home 2 months ago to move in to when we sell our primary residence (which has been on the market almost 1 year). Because our home has not sold, we rented it out for the 2016-2017 ski season(6 months). We did some necessary upgrades/repairs. We have only slept in the 2nd home for 2 nights. Can this be considered a rental for just 2016? It is very possible we will move in there permanently in May of 2017 if we sell our home.
How/do we have to declare the income if it not a rental property? We live in NH. Thanks!!!

[SweetieJean]

See OP's related question:
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/3393448-our-house-has-been-on-the-market-for-300-days-i-took-out-a...>

[SweetieJean]

Are you renting out the old property OR the new property OR both?

[bvi1998]

renting out the new only, just because we have not sold our primary home yet

[TomYoung · Accepted solution]

"Can this be considered a rental for just 2016?"

Well, it will be a rental property in for some portion of 2016, and also a rental property in 2017 for the period of time you have it "available to rent", which I assume could be to May of 2017 when you take it off the market and make it your new residence.  Until you made the 2nd home "available to rent" that home would be considered a second residence, assuming you didn't make it available for rent shortly after purchasing it. 

So, depending on the timing of all this, you might report the home as a second residence for some period of time - taking deductions on Schedule A - and as a rental property for some time, reporting income and expenses on Schedule E.  Schedule E reporting will continue for the first part of 2017 until you convert the second home into your primary residence.

Tom Young

[SweetieJean]

NH has a Business Profits applies to any landlord who rents at least one property in New Hampshire, and whose total revenues from rental properties everywhere (inside and outside the state) exceed $50,000 in a year.
<a rel="nofollow" target="_blank" href="http://www.nhbr.com/May-13-2016/The-tax-implications-of-short-term-rentals-in-NH/">http://www.nhbr.c...>

[bvi1998]

Thanks All... The rent will be well under $50k. We bought it, then rented it out a few months later because of our primary residence.
I am now assuming that I can write off the improvements we made, which were a new water heater, GFI's, and a completely new window including the frame. Is this correct?
Thanks!