New Rental Sch E will not take loss on 1040

Forum|Forum|3 years ago
February 2, 2023
2 replies
19 views

Have a client with a new schedule E for an airbnb. Purchased in November and Had first income last 2 days of December ( for New Years stay but paid and arrived on Dec 30th)

So between the depreciation of new furnishings, cost of utilities, repairs etc... the outcome is a loss. BUT the program states zero allowed. Can you tell me why or what to do? Am I not checking something that should be checked or marked?

I thank you in advance for you all of the community helpers!

ProSeries Professional

This topic has been closed for replies.

Just-Lisa-Now-

Intuit Community Champion

Is their income too high to be able to take the loss?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

shf1957Author

Level 6

Their income is 144,250. Just wondering if it's the section below meaning that QBI ? Wife purchased this home, they had new roof put on ( deprec) and new furnishings ( deprec) Purchased in November and mid December had it open /adv for rentals.. First rental was for the new years weekend and they paid 12/30 and stayed 30th, 31st and 1st. (so income came in for 2022) Please help.

C

craig

Level 3

First you need to decide if the AirBnB qualifies for Sch C.

Schedule E the issue could be AGI limitations or was the correct box chosen for the type of activity

shf1957Author

Level 6

Airbnb is a separate home in a different town. Party is an individual that has a main full-time job in a different type of business (medical field). This was purchased to just rent out as an airbnb for weekend or weekly rentals. Could you please fill me in if this isn't something they to gainfully provide as a living...as some corporations and business's do how I would consider it as a Schedule C business? Please don't take that wrong, I am just trying to educate myself since alot of clients are now doing this. (Hopeing it pays for all expenses so someday they will be mortgage free on that property and retire there)

Sign up

Login with SSO

Let's get you signed in

Login with SSO