Covid Relief for Landlords Tax Question
I had a house rented in 2020 and 2021 to a tenant who quit paying due to job loss as a result of Covid. Because I was not receiving rent, I did not deduct depreciation. She applied for rent relief and I was reimbursed by the government for most of the rental income I missed. My understanding is that I will be receiving a 1099 for the funds for this year, 2022. (the year I received the reimbursement).
My question involves how to treat the 1099 income for tax purposes. Should I file an amended return for 2020 and deduct depreciation and declare the appropriate portions of the relief funds to that year? (I have not yet filed for 2021) Do I owe the tax all at once for this year 2022? If I cannot apply the reimbursement to 2020 and 2021 can I still go back and file an amended return for the depreciation? The tenant moved out on Jan 3rd of this year and I have not rented it out this year due to extended improvements I've been making. Can I deduct depreciation for this year even though its not rented out since I am receiving a 1099 for past rental income?
Any advice appreciated.