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Investors & landlords
TO help clarify, when you collected rent, and when it's available for rent are two different things. For example, if you were moving out of your primary residence and going to convert it to rental.
Date of conversion to rental - Usually the day after you move out.
Available for rent - the first day a renter "could" have moved in.
Generally, when you move out of a house that was your primary residence, it can take a week or more before it's in shape for a renter to move in. You may need to paint, fix that leaky faucet in the bathroom, clean the carpets, and other stuff.
So the date of conversion is the date one day after you move out. That's when you start getting it ready to rent. After a week, it's ready and you put that FOR RENT sign in the front yard. It is on that day, "available for rent". Now, it could take you months to actually get a renter you're comfortable with and that's comfortable with you as a landlord. But your deductible rental expenses start on the day it was "available".
In your case, there is no "conversion" because it was a rental on the day you got it. So on that initial screen you would select the option to indicate that you "purchased this asset new" on the date the deed was transferred to your name. Days rented would be 12 days, and days of personal use would be ZERO since you never lived in the house for one single day in 2015.
If this is your first experience as a landlord, I have tons of notes from my 24 years of doing this, and would be happy to provide you a copy if desired.
Date of conversion to rental - Usually the day after you move out.
Available for rent - the first day a renter "could" have moved in.
Generally, when you move out of a house that was your primary residence, it can take a week or more before it's in shape for a renter to move in. You may need to paint, fix that leaky faucet in the bathroom, clean the carpets, and other stuff.
So the date of conversion is the date one day after you move out. That's when you start getting it ready to rent. After a week, it's ready and you put that FOR RENT sign in the front yard. It is on that day, "available for rent". Now, it could take you months to actually get a renter you're comfortable with and that's comfortable with you as a landlord. But your deductible rental expenses start on the day it was "available".
In your case, there is no "conversion" because it was a rental on the day you got it. So on that initial screen you would select the option to indicate that you "purchased this asset new" on the date the deed was transferred to your name. Days rented would be 12 days, and days of personal use would be ZERO since you never lived in the house for one single day in 2015.
If this is your first experience as a landlord, I have tons of notes from my 24 years of doing this, and would be happy to provide you a copy if desired.
May 31, 2019
5:48 PM