Rental Property loss deduction

[Mandeb123]

For many years we have rented out our dry stack boat slip and reported the income on our taxes. We've entered the amount of rent we've collected and the expenses we pay (HOA dues and assessments) and until now the income has been positive. Last year we bought a boat and only rented out our slip for 3 months of the year, then took it over for personal use and will continue this for the foreseeable future.  Even though we have no plans to sell the slip, and we will continue personal use, a rental property loss deduction is populating on Schedule E. This doesn't seem/feel right since we wouldn't report any income going forward unless we elected to sell our boat and lease out the slip at some point again in the future. Am I doing something wrong? If so, how can I fix it?

[ThomasM125 · Accepted solution]

You would enter the rental income and costs that apply to the period of time you had the slip rented. For instance, if you paid $200 a month for HOA fees and you rented the slip for three months, you would enter $600 for the HOA fees. That shouldn't result in too excessive a loss on your tax return.

Also, you should edit the Profile section of your rental property and when you see the screen that says Do Any of These Situations Apply to This Property? choose the I converted this property from a rental to a personal use in 2021 option by checking the box. That will allow you to remove the rental from your TurboTax so depreciation expenses won't show up in the future on your tax return.

[Mandeb123]

Thank you SO MUCH!!! I feel so fortunate to have a community that can help with situations/questions that are somewhat unique. I really appreciate your help Thomas!!!