Schedule C or Schedule E?

[gara21415]

I have another question for the group...  I am trying to maximize my deductions/losses when filing.

I purchased a condo on a recreational lake in August of 2022 with the expectation of using it occasionally in the summer months, but primarily offering short-term rentals using a property management company local in the area.

I put over $30k of expenses into it including completely painting ($6400) the 2 br/2ba unit, all new furniture (beds/mattresses, dressers, nightstands, couch, chair, table, bar stools, etc.), TVs, small appliances (Microwave, coffee maker, range hood, etc.), some light fixtures, ceiling fans, bedding, sheets, towels, etc.  All of the work was done myself expect the paining where we hired a contractor.

As this is a recreational lake area and we did the work heading into winter, we did not get any rental nights in 2022.  I am trying to maximize my losses on the condo, but have no earnings on the schedule E, so not really reducing my overall earnings at all for 2022 on the schedule E that I started working on. 

As I materially participated in everything last year preparing the condo for renters, can I file this on a schedule C (I have an LLC that is the entity offering the rentals) or do I need to use a schedule E?

Where can I do myself the most good and reap the best tax benefit?

Thank you!
Michael

[gara21415]

OK - thank you.. Sounds like Sched E it is then!  any reason why I cannot claim the insurance and mortgage interest on my Sched A deductions at least?  I'm getting -0- benefit on my Sched E as I have things right now.. just a fat loss that doesn't seem to decrease my tax liability.   thanks!

[SantinoD · Accepted solution]

You can claim this property as a second home for 2022 since you did not receive any rental income in 2022. This way you can take the Mortgage interest and property tax as an Itemized deduction, but insurance won't qualify.  And you would place the rental in service in 2023.

@gara21415