- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
It looks like you converted this property from personal use to rental use in 2021 after living in it for 151 days and then renting it out from June on. If that is the case, you want to mark personal use days as 0. TurboTax determines the basis based on your percentage of business use. If you converted it to a full-time rental in June 2021, your personal use should be 0%.
TurboTax says in the fine print when entering your personal and rental days, "The number of days during the year you lived in this rental property before converting it as a rental do not count as personal use days and should not be entered as personal use during the year."
You are exactly correct, by entering it the way you did, only 58% of the basis is being depreciated because the software thinks this is a vacation property that you still use for personal use 42% of the time. When you file your amended return, you will want to adjust the personal use during the year to 0. That will correct the basis to $465,097. TurboTax will then calculate the correct depreciation deduction using the mid-month convention for the first year the property was used as a rental.