Even if you turned your residence into a rental property the first time in 2021, the personal use days should be 0 if you did not live in the property after July 1, 2021. Otherwise, the depreciation won't calculate properly. Also, make sure to take your depreciation, if not, you are leaving deductions off the table.
Go back to make the correction by following these steps:
- Click on Edit/Add next to Rental Properties and Royalties (Sch E), then Edit next to your rental property
- On the next screen, click Edit next to Rental property info
- On the next screen, in the middle section Rental type and usage, click Edit under Days rented
- On the screen that says Was xxx rented every single day in 2021? select No and enter 184 as Fair rented days and 0 as Personal use days.
You can deduct the full expenses that are related to rental only, but you need to manually separate the property tax paid and mortgage interest by using this formula (184/365)*property tax paid to allocate to the rental portion and do the same for mortgage interest. And of course do the same calculation for whatever else that you paid for your house that included the first half of the year when you lived there, for example, the home insurance premium you paid covered the whole year, you need to separate that payment as well.
See this help article on how to enter depreciation for your rental property.
@Jack7777
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