Income & Expenses on Temporary Rental

[lipepe]

What is the name of your state (only U.S. law)? NY

I am asking this question for my daughter who lives in NYC. She owns a studio apartment in NYC which she now rents out temporarily while attending law school in Flushing, renting an apartment of her own there because it's too far and time consuming to commute. Our questions are: Since this is temporary, should she report the income (and therefore, expenses including depreciation, which she will have to figure out the basis) on her tax return? Even though she will incur losses on paper, it's not going to do her much good because she doesn't have any income while attending school. It only complicates her tax return preparation and she just doesn't have time for it. Can she legally treat the situation as if she's still living in her own apartment? She wants to do what's right.

PepeWhat is the name of your state (only U.S. law)?What is the name of your state (only U.S. law)?

 

[tranquility]

For the length of time she's probably renting it she will have to file a schedule E and do it right. For the first year, it might be a good idea to see a tax professional and use the return as a guide for future years.