Hi, I converted a rental property to my primary residence part-way through the year. TurboTax asks me to enter my expenses and capital improvements for the whole year. The algorithm counts 100% of certain categories like management fees and prorates other categories like repairs, cleaning and maintenance.
I did a lot of work after the conversion, but the wear happened during the rental years - for example, I had to repaint and replace the fence, and the landscaping that the tenants were supposed to help maintain was in a terrible condition. Can I claim a pro-rated portion of these expenses that occurred after I stopped renting, when I was living in the house? Because that's what the Turbotax algorithm does.
I don't think I can claim them -- but if I enter only the expenses incurred during the rental period, TT goes ahead and lobs off 2/3 of my true landlord business expenses because I converted the property 1/3 of the way through the year.
