Marilyn/Kris - would all the advice in the posts above apply the same if the house is used as a short-term rental property. (Some of the earlier posts in the chain mandated that personal days were 0, etc. which is appropriate if it's a long-term rental, but not always the case when you use it for short-term rentals like airbnb, VRBOs.) Situation is home was purchased as a second home and after a couple of years was converted to a short-term rental property in the middle of the tax-year. Since the "start date" the owners spent less than the 14-day annual limit in the home for personal use. CPA said that would be fine if measured from the start date. Owners spent a lot (furniture, lighting, general maintenance, household items) to spruce up the house in order to convert it to a short term rental. Is none of that expense deductible unless it is added to the cost basis? And where does one start the cost basis (original purchase, remaining morgage, value of home)?
