rental property personal use, Balance sheet is off

[shimon]

rental property personal use, Balance sheet is off

I am using TT business doing my tax return for LLC partnership on form 1065.

For tax year 2022, I lived in my rental property for 3 months, the remaining of the year it was rented out. I adjusted my expenses and removed the expenses for the 3 months that I lived there.
By doing this, my balance sheet is out of balance for the amount that was removed for the tax year.

How can I balance it?
I am thinking to add the amount out of balance as receivable from me to the LLC. In fact, since I used the property for personal use, and the LLC paid for it, I need to pay it back to the LLC. Would that work?

[Mike9241]

i'm not sure Turbotax business can handle your situation

1) personal use was more than the greater of 14 days or 10% of the days rented - 90 is more than 10% of 270

2) the property was rented for more than 15 days

3) the property is supposed to be treated as a dwelling unit used as a home. Expenses are to be prorated between personal and rental use.  Deduct the personal portion of interest if qualified, real estate taxes on your Schedule A. Rental portion of interest, taxes is not limited to rental income. other remtal deductions are limited to remaining gross income from the property and are subject to ordering rules. Carryovers are allowed. 

this personal use by you probably affects the reporting for your partner. see a pro. 

[AliciaP1]

As Mike9241 has posted, you would benefit most from seeking assistance from a tax professional in your area.  Your usage of company property as a residence affects your basis in the partnership as well as the reportable expenses to the business.

@shimon 

[shimon]

Can you recommend tax professional in my area? I did my tax return on Turbo tax business. for 2021, and all data can be transferred to 2022.

[tagteam]

You can check out TurboTax Business Full Service.

See https://turbotax.intuit.com/personal-taxes/online/live/full-service/business-taxes/

You can also check enrolled agents in your area.

See https://taxexperts.naea.org/listing/service/business-tax-preparation

[shimon]

Thank you.

From your answer i understand that I cannot use TT Business for this year. However, since I sold my property in Feb. 2023, I will have to file 1065 for tax year 2023. In 2023 the property was empty with no tenant, and no personal use.

I don't understand how I can file 1065 for 2023 without filing 1065 for 2022.
Also, in 2022 I spent over $9000 to repair the place and get it ready for sale. I could not itemize deduction for 2022 since my standard deduction of $25900 is more than the itemize deduction.

[tagteam]

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@shimon wrote:

I don't understand how I can file 1065 for 2023 without filing 1065 for 2022.

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I believe the point was that you need to file a 1065 for both tax years (2022 and 2023), but you need to seek guidance from a tax professional.