Carl
Level 15

Investors & landlords

What constitutes it being classified as a rental?

Back in 2015 on your 2015 tax return when you initially set up the property for the very first time, you indicated in the TurboTax 2015 program that you converted the property from personal use, to rental. The program asked you for the date of the conversion. You would have entered a date of 10/1/2015 or before. Now if you moved out of the house in Sept and started advertising it in Sept, then your conversion date/in-service date would have been anytime between one day after the day you moved out, and 10/1/2015.  So for the period of time in 2015 while it was classified as a rental, it was 100% business use.

Five years later when doing your taxes in TurboTax 2020 (the year you moved back in to the property as your primary residence) you would have selected the option to indicate "I converted this property from rental to personal use" and would have entered a conversion date of any time between one day after the last renter moved out, and the day you moved in. For that period it was classified as a rental in 2020 (Jan-Apr) the property was 100% business use.

 

 In 2022, property was converted back to a rental in May 2022 and back to a primary residence in Nov 2022.

Wait a minute! You converted the property from personal to rental, and then from rental to personal in the same tax year? If so, this "should" have caught my eye from the beginning. That changes everything. I did read back through this thread and it looks like I missed that. Just making sure you didn't make a typo.