Seeking Advice on Amending Tax Return for Rental Property Expenses

[Michael Moreno]

Hi everyone,

I recently purchased my first single-family property in 09/08/2023 and converted two smaller rooms into rental units while occupying the principal room. I invested approximately $4,000 in furnishing these two rental rooms with linens, mattresses, bed frames, dressers, and nightstands. Although these items are eligible for tax deductions, I overlooked this aspect when filing my taxes last year.

Now that it's 2024, I'm wondering if it's possible to file an amended return to potentially recoup some money from the IRS. Given the timeline and the nature of these expenses, I'd appreciate any insights or advice from those familiar with tax regulations in such situations.

Additionally, I'd like to know if I can claim depreciation, mortgage interest, homeowner's insurance, utilities, HOA dues, and other expenses associated with the rental units of my home from 09/08/2023 to 12/31/2023. I overlooked including these details on Schedule E when I initially filed my taxes.

Any guidance on these matters would be greatly appreciated. Thank you in advance for your assistance!

[Michael Plaks]

@Michael Moreno

From your unclear story, I assume that you already filed your 2023 tax return which is due 4/15/2024.

You can - and should - file a corrected return. If you file it before 4/15, it is not even an "amended" return but a "superceding" return. It will simply overwrite your original return.

You can claim all the regular rental expenses that you mentioned. Just be aware that you cannot create a loss. You can only wipe out your 2023 rental income down to zero but not go below zero. The loss created by your deductions will be locked and pushed into future years.