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February 16, 2025
Question

I had 2 rental in different states one is long term and the second is short term. how to get he deduction for the active short term rental?

  • February 16, 2025
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    1 reply

    February 16, 2025

    To get the deduction for your active short-term rental in TurboTax, follow these steps:

     

    Set Up State Information:

    • If your rental property is out-of-state, first set up that state in My Info (TurboTax Online) or Personal Info (TurboTax Desktop).

    Enter Rental Property Information:

    • Open or continue your return - Be sure you are logged in for link below to work.
    • Navigate to the rentals section:
      • TurboTax Online/Mobile: Go to rentals.
      • TurboTax Desktop: Search for rentals and select the Jump to link.
    • Answer "Yes" to the question "Did you have any income from rentals or royalties?"
    • On the next screen, select any options that apply to you regarding being a real estate professional.
    • Select "Rental property" and continue.

    Indicate Material Participation: If you materially participated

    • Ensure you indicate that you materially participate in the rental activities. This is crucial for qualifying as an active rental.
    • Answer questions about your involvement in managing the property, such as handling bookings, cleaning, and guest communications.

    Enter income and expenses:

    • Enter all rental income received.
    • Deduct expenses such as:
      • Mortgage Interest
      • Property Taxes
      • Operating Expenses (e.g., cleaning fees, utility bills, supplies, insurance premiums)
      • Advertising and Marketing Costs
      • Repairs and Maintenance
      • Depreciation

    Nonresident State Return:

    • If filing a nonresident state return for out-of-state rental income, complete the nonresident state return before the resident state return.