Should I include the income and expenses for a condo I only rented for 2 1/2 months? I made upgrades, new furniture/appliances. No schedule E, is it worth including?

[eolgers]

I purchased it Feb 2024. The repairs/upgrades were move than what I received in rent. I lived in the home the rest of the time.

[SabrinaD2]

Yes, you should report the condo rental on Schedule E (Form 1040) even if you have a loss. Here are the key points to consider:

• Report Rental Income and Prorated Expenses: Report the rental income and prorate the expenses based on the rental period (2.5 months out of 12 months). This includes repairs, upgrades, and new furniture/appliance
• Depreciation: Upgrades and furniture are usually depreciated over several years and are not fully deductible in one year
• Rental Losses: Rental losses cannot exceed rental gains due to personal use. However, even with a loss, rental activity should be reported
• To report rental income in TurboTax follow instructions here.

For more detailed information, you can refer to the IRS guidelines on reporting rental income and expenses on Schedule E