Rental Property Expense impact on 1040

Forum|Forum|2 years ago
April 9, 2024
2 replies
10 views

I have a client that purchased a rental property in 2023. I am entering expenses associated with the purchase and rehab for eventual rental in 2024. So far the loss from those expenses is not flowing to the 1040. Is that because there is no income or is there something else I maybe missing in Proseries?

ProSeries Professional

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dascpa

Level 11

The purchase and rehab of an property has no P&L Effect. It's all balance sheet items. Once the rental is in use you can then start depreciating the property and claiming ordinary and necessary operating expenses.

Then you need to look at: passive activity loss based on income? Also, active vs material participation?

Seems like you could use some continuing education in this area.

qbteachmt

Level 15

"I am entering expenses associated with the purchase and rehab for eventual rental in 2024. So far the loss from those expenses is not flowing to the 1040."

I teach it as: There is a difference between expense and expenditure.

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