So in this case, even though the property was available for rent starting Nov 1, for the question
"Was ABC rented every single day in 2022?" will be Yes?
No. As I referenced in my previous post, please read the example in IRS Publication 527 at https://www.irs.gov/pub/irs-pdf/p527.pdf#en_US_2020_publink1000219175, 3rd column. To wit:
The cottage was used for rental a total of 85 days (92 − 7). The days it was available for rent but not rented (7 days) aren’t days of rental use.
In that case, how would I split the expense like Real estate taxes, Mortgage interest, HOA, Insurance given this property was my primary residence till Oct 31st. Should I prorate these monthly expenses for 2 months?
If you elected to have the program do the splits for you, the only thing you will need to manually pro-rate will be the property insurance. Again, *IF* you elect to have the program do the splits for you, it will split the property taxes and the mortgage insurance between SCH A for the period of time it was personal use, and SCH E for the period of time it was classified as a rental.
HOA dues are manually pro-rated. If billed monthly then you only claim the amount paid for the 2 months it was classified as a rental. If billed yearly, then divide the total by 6 and that is the amount you claim for the 2 months it was classified as a rental.
For the property insurance, you will have to prorate that manually no matter what you select in the program. This is because property insurance paid for the period of time it was personal use is not deductible anywhere on your tax return.
For the Real estate taxes and Mortgage interest on this property from Jan 1 to Oct31st,.....
Your property taxes and mortgage interest are claimed in the tax year you actually paid them. it *does* *not* *matter* what period of time you paid those expenses *for*. So the fact that your property taxes may be for a fiscal year beginning on Oct 1 of 2022 and ending on Sept 31 of 2023 doesn't matter. If you paid the property taxes in tax year 2023, then you claim them for 2023.
So if you paid your 2023 property taxes on Sept 29 of 2023 and then paid your 2024 property taxes on Oct 1 of 2023, Those two amounts added together are the total property taxes you paid *IN* 2023.
You can only have one primary home at any given time. In your case, the old home was your primary home until Oct 31, 2023. The new house was your primary home starting Nov 1, 2023. Note that the dates do not (and can not) overlap, as you can not have more than one primary home for any given period of time.
The loan on your old home is for rental property. THe loan on your new home is for your primary residence. It is "IMPORTANT" to get this right. Otherwise, you may run into a "maximum amount of interest you are allowed to deduct on SCH A" problem that *will* cost you money in taxes you pay and/or don't get refunded.
