How to report rental income on a lock-out condo

nms
nms Member Posts: 4 Newcomer
in Income

We purchased a vacation condo which we are renting out through the management company that owns the building. The condo is actually three rooms, which can be rented out separately or in combinations.

How do I determine the "fair rental days" and "personal use days" for such a thing? Sometimes one room is rented but the other two aren't, or are rented by different people. I get a monthly summary of how many days each room or combo was rented, but I don't know what dates those are.

I considered dividing these into separate properties, except that the management company only sends me one 1099-MISC for the whole thing, so if I did this, how would I "attach" that 1099-MISC to them?

Answers

  • nms
    nms Member Posts: 4 Newcomer

    Okay, I see from another comment that I can leave out the 1099-MISC as long as the totals add up to at least the amount on there. (https://community.freetaxusa.com/discussion/2087/can-a-1099-misc-of-the-total-rent-of-multiple-properties-be-allocated-per-property)

    So for future readers, I'm going to divide these into separate properties. When the management company reports monthly rents, I'll divide the combinations up evenly among the rooms that make up the combination. All units in the combos will be counted as rented when the combos are rented. Other expenses will be divided evenly among the rooms where they apply to each room.

  • nms
    nms Member Posts: 4 Newcomer
    edited March 12

    Okay, so my question is now: How do I divide a depreciable asset among the three units, specifically the purchase of the condo? Will it be work to just attach the depreciation to one of the units, or am I missing something? I did get a warning "Rental Missing Depreciable Rental Property".

    And if I do have to divide the assets, how do I do this considering that I declared them last year when I was treating this as one unit?

  • nms
    nms Member Posts: 4 Newcomer

    Okay, now I'm leaning away from doing that, as other research says it is better to keep it as one economic unit, since it is all one property and won't ever be sold or managed separately. Argh. Is there anyone out there who can help me?

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