topic Fair Market Value for rent in Investors & landlords

Fair Market Value for rent

RBest — Sun, 02 Feb 2020 13:36:51 GMT

I'm preparing my 2019 taxes and the program doesn't have a page where I can enter the amount I charge for rent which is below FMV. Past years I was able to enter this amount and get a deduction for that. Is this a glitch in this year's program? HELP!

Re: Fair Market Value for rent

ColeenD3 — Sun, 02 Feb 2020 15:11:31 GMT

Are you saying you have a rental Not For Profit? See the procedure below.

If you had a profit motive and were not able to get the rent you desired you still enter the rent in Schedule E.

To report:

Click on Federal Taxes
Wages and Income
- You may need to click Jump to Full List, Show me everything or I’ll choose what I work on depending upon your situation and the TurboTax version you are using.
Scroll to the very bottom; Less Common Income; Click Show more (if start isn’t displayed)
Click Start across from Miscellaneous Income, 1099-A, 1099-C
At the “Other Reportable Income” screen, enter your description – Not for Profit Rental and then amount of income you received.

Re: Fair Market Value for rent

TomD8 — Sun, 02 Feb 2020 15:42:50 GMT

And you cannot deduct the difference between the FMV rent and the rent you actually charged.

Re: Fair Market Value for rent

Carl — Sun, 02 Feb 2020 17:39:43 GMT

Past years I was able to enter this amount and get a deduction for that.

I can assure you with 100% certainty that you have never been asked for the rent you charge. You have only been asked to enter the amount of rental income you actually received in the tax year. You also did *NOT* get a deduction for charging below FMRV. In fact, you lost money for that. (Well, not yet. But you will when you sell the property).

When you rent below FMRV, your carry over losses are just flat out not allowed. You lose them, permanently and forever.