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Get your taxes done using TurboTax
Yes, you will allocate expenses based on the days of each type of use. As you walk through TurboTax, it will ask you when you purchased the property, if you converted it from personal use to a rental property, how much you paid, how many days you rented it out, and how many days you lived in it. Then TurboTax will do the allocation based on the days you live there vs rented.
You will claim the expenses and income for the property on your 2022 taxes for July 28 through December 31.
From July 1st to July 28th, you can only deduct expenses if the property was available and ready for renting. Meaning if the property was available for the tenant to move in on July 1st, you may be able to deduct carrying costs such as utilities. If the property was not ready for the tenant on July 1st, the expenses incurred during that period of time would not be deductible rental expenses.
You cannot claim any of the expenses during the time you lived there.
However, if you made improvements to the house during the time you lived there, like putting on a new roof, new cabinets, etc., you will include that in the cost basis of your house to depreciate during the rental period.
The same will apply for 2023. While you are living there, no part of the cost will be deductible.
This link will give you more detail on what you can and cannot add to your cost basis.
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