Do I have to report the condo A as an investment property for 2022? Yes, Condo A will have to be reported as a rental property since you rented it for more than 14 days in 2022.
If yes, since condo A was still our primary residential property until Sep 15, 2022, how should we handle it? By percentage? Kind of. Things that were paid for the year like homeowners insurance and property taxes at one time would be allocated based on number of days of personal use vs number of days as a rental. Expenses incurred during the rental period, such as maintenance or utility bills would be deductible. Those same expenses incurred while a personal residence are not deductible.
If by percentage, does it mean I need to split the mortgage interest & property tax to normal residential vs investment property? Yes, mortgage interest and property taxes will be prorated.
Where TurboTax will handle this case? To enter your rental income, you will select Income>>Rental Properties and Royalties. You will walk through all of the steps in this section to report your income and rental property for depreciation.
To make it easier for this year, can I still claim condo A and condo B as normal residential (primary and secondary) properties in 2022, if the tenant is actually my relative/close friend and no strict contract/lease? No, if you are receiving rent, whether or not it is being rented to relatives and whether or not you have a contract, you need to report the rental income. The only difference may be if you are not renting it to your relative at FMV you cannot claim expenses in excess of rent received. You can only claim expenses equal to or less than rent you received.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
