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Rental Losses

Frustrated2
Level 2

How do we handle rental properties that were not rented at all during 2020 due to covid?  The program is saying not a valid rental but that is not true due to the pandemic.  Has anyone figured out how to report this info?

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6 Replies 6
TaxGuyBill
Level 14

If the property was available to be rented, the work-around would be to say it was rented for 15 days.  It's not ideal, but it will make the software work.

If the property was not available to be rented, then more information would be needed.

Frustrated2
Level 2

It was available and then covid shut it down and then the clients didnt want to rent it.

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TaxGuyBill
Level 14

Then you would still need to do the work-around and say it was rented for 15 days.

But you said that after Covid started, the clients did not want to rent it.  So it was no longer a rental at that point. That means that you only enter the expenses (and depreciation) for the time it was available for rent.

Frustrated2
Level 2

This is a vacation rental home that is prorated for their personal use already so I guess I should use the days it was available for rent to prorate everything.

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TaxGuyBill
Level 14

You should have mentioned that a LONG time ago.

It was not a rental.  No rental expenses.  No, you can't use the days available for rent.  The prorating of a mixed personal-and-rental "vacation home" is based on ACTUAL days rented.  In this case, it was zero.  So as the program is telling you, it is not a rental this year.

Frustrated2
Level 2

Thanks for the info.  Your right I should have mentioned that up front busy swirling around in tax crap not thinking clearly to ask the question.

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