We bought a storage building in 2020. Two-thirds of the building is used as rental spots for cars, boats or campers, mostly in the winter, but also available for year round storage. We didn't have any rental income in 2020, so I didn't set this up within TurboTax. We had small rental income in 2021 and I am setting up the build in TT but I am not sure if this is considered Commercial Property or Other Property and then give it a description of Storage Building? We don't live there, this is strictly a storage building in another town. We use a portion of it for our own storage, and have 2/3rds of the building available for others to rent. Do I enter this as Commercial? There is no way we would ever make a profit with the small rental amounts, so I don't know that commercial is the correct category. Anyone available to help with this? Thank you for any advice.
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This is nonresidential rental real estate (commercial) and the recovery period is 39 years.
See https://www.irs.gov/publications/p946#en_US_2020_publink1000107523
This is nonresidential rental real estate (commercial) and the recovery period is 39 years.
See https://www.irs.gov/publications/p946#en_US_2020_publink1000107523
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