Hello All,
I have converted my primary home to a rental and it was rented for only 1 month in 2024. The gross income is 3099 in 2024 and net income is 141. I have indicated in turbotax that i don't qualify as a real estate professional. But somehow this income is getting treated as active income and increasing my federal taxes by ~1k . I have other rentals which are reported correctly. Not sure what's with this new one I added. I can provide any additional details and appreciate any help others can offer.
Thank you.
Did you enter any personal days? Is it no longer your personal residence, and will only be used for rental?
Something else seems wrong other than it being treated as nonpassive. A profit of $141 should not increase your tax by $1000.
See if this information helps.
Number of days of personal use - ZERO. The program is asking for number of days of personal use "AFTER" you converted it to a rental. Most likely, that is zero.
Number of days business use - THE WHOLE YEAR. Yes, the entire year. The program will "know" that it was used for business from the date you indicated it was converted to a rental/available for rent, to the end of the year.
Number of days rented - the number of days the property was contracted to be lived in. Doesn't matter if the tenant didn't move in until after their contracted dates of occupancy started.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
praveenb235
Niveau 1
FelicityZ
Membre expérimenté
Jren25
Membre expérimenté
yulud
Niveau 1
yulud
Niveau 1
(fr) You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.