PatriciaV
Expert Alumni

Investors & landlords

Yes, if you personally occupy a property that was formerly a rental, you would report that you converted it to personal use as of the date you moved in. Enter the number of days it was rented before you moved in. If you didn't use the property for personal use before you moved in, report zero personal use days.

 

Because the rent you're receiving is below fair market rent, you aren't renting for profit. You still need to report the income, and payments of this type are generally reported as "Other Income" under Less Common Income. Payments received for living expenses are not reportable.

 

You can claim mortgage interest and property taxes for the portion of the year the property was your personal residence under Deductions & Credits >> Your Home (the balance of those amounts would still be rental expenses).

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