First, why was the property empty? Maybe you were doing property improvements that took the full year or longer? Maybe the house was burned to the ground at the end of 2015, and with insurance settlements and all you did not get it rebuilt until the end of 2016 or shortly after that? There are ways you can maintain the rental real estate status and if you qualify to do so for the entire year, you can. Otherwise, you'll need to convert it to personal use.
So why was the house empty for an entire tax year?
