We converted our short-term rental to a second home in 2024, so it's just a second home for all of 2025. We did rent it for one one day for $120. My understanding is that we don't have to report this rental income, but we also can't take any expenses on the home on Schedule E (but can deduct real-estate taxes and mortgage interest in Schedule A).
But I'm confused about how to enter this in Turbotax. If I say that we rented for 1 day and used for personal use 16 days (an estimate), and enter the rental income and also the expenses, it actually deducts 1/17 of the expenses from the rental income and gives me a Schedule E loss.
This seems completely contrary to the rule I quoted in the first paragraph. Should I instead say I didn't rent it at all, and let Schedule E be deleted ? (I've kept my own records of depreciation during the period it was a short-term rental, so don't need Schedule E for that).
