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Updated about 2 years ago,
Airbnb/House Hack combined - Tax Timing Question
I recently bought my first home with a conventional loan near the end of 2022. I've been setting it up to rent out part of the house through Airbnb while living in the other half. I've done some research into the tax implications and have seen that it can get tricky/complex very fast, but that basically you can prorate the portion of your house that you are renting and treat that as a rental property while treating the other portion as a personal home.
My concern is that I haven't began renting/advertising to rent out the other portion of my house yet, so my "rental income" is zero for 2022. However, I have made plenty of legitimate expenses to set up the Airbnb and most of those expenses were in 2022.
My question is: although I made no income from my "short term rental/house hack", am I still able to benefit from the same expense write offs as anyone else who is doing a house-hack/rental when filing for 2022 taxes?
I've heard that you have to be "in business of renting" to get these benefits, which I guess technically I am not yet. But since most of these expenses I made were in 2022, does that mean I just miss out on being able to write off those expenses?
If so, then it seems like I chose pretty poor timing to make all my expenses, ha!
Thanks in advance for any feedback!