This is about a whole house for rent. Tenant lived there from Jan 1-31. Then I advertised and attempted to rent out the house, but failed to find another tenant. Thus the house was *available but vacant*. After 7 months, I stopped attempting on Aug 31, and my family moved in for rest of the year (Sep 1-Dec 31).
My understanding is that:
(1). TurboTax box asking *Days rented at FMV* would be 31, because it says *DO NOT count vacant days*.
(2). TurboTax box asking *Personal days* would be 122.
Using IRS method, ratio would be 31/153=20%. I could deduct 20% of expenses.
Using Tax Court method, ratio would be 31/365=8%. I could deduct 8% of expenses.
But what I was HOPING to do was also capture the *available but vacant* days, which is quite a lot.
In total:
Successfully rented at FMV: Jan 1-31=31 days
Available but vacant: Feb 1-Aug 31=212 days
*Total business days*: 31+212=243
The ratio for this *total business days* is 243/365=66%. I SHOULD be getting 66% deduction of expenses.
Per IRS Publication 527: If you HOLD property for rental purposes, you may be able to deduct your ordinary and necessary expenses while the property is VACANT.
But TurboTax doesn't ask for the 243 'total business days.' It only asks for the 31 'days rented at FMV.' I'm losing out on all those *available but vacant* days after Jan 31.
