AnnetteB6
Expert Alumni

Investors & landlords

Your ratio of rental days to personal use days is most likely causing this issue.

 

When you convert a property from personal use to rental, you do not count any of the days prior to the conversion day as a personal use day.  Personal use days is only counted if you used the property personally after it was converted to a rental property.  

 

Try adjusting your personal use days and that should fix the situation you are seeing.  You will need to prorate certain expenses such as your property taxes and HOA dues to only report the portion of those expenses that you incurred after the property was converted to a rental.  

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