- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
With respect to personal use days of a rental property, you only consider the time it was used as your personal residence after it was converted to a rental property. Up to the date it was converted, it was simply your personal residence. TurboTax should give you a reminder on the screen to not enter any personal use days for the period of time prior to converting the property to a rental.
The personal use days is confusing when you have converted your personal residence to a rental. However, the question only applies to any time period after the date of conversion. It is more applicable to the situation where you have a vacation rental that is being used for personal purposes for a few days and being rented other parts of the year.
If you enter personal use days prior to the date the property was converted to a rental property, then your expenses will not be prorated correctly.
Your calculation example above is correct for your scenario. Also, your new primary home may also be added to Schedule A itemized deductions.
When you go back through the Rental Income and Expenses section to remove any personal days you entered, then the amounts automatically prorated between Schedule E and Schedule A may change. Pay close attention to the messaging on the screen for guidance about whether to enter the full amount in Schedule E or just the portion for the time the property was a rental. Then, do the same when you get to Schedule A entries. If an amount has been reported in Schedule E, it is generally shown on the screen so that you will not duplicate the entry.
**Mark the post that answers your question by clicking on "Mark as Best Answer"