Carl
Level 15

Investors & landlords

Be aware also there are two other percentages one has to deal with too, when renting out a part of your home in the year of converting that space to a rental.

- Percentage of floor space rented that is exclusive to the renter. This is less than 100%

-Percentage of personal use of that floor space that is exclusive to the renter. This will commonly be 100%, as once you convert it to rental use, that space remains 100% business use unless you do "in fact" use it for personal use while it's classified as rental use. What you used that space for before converting it to a rental, does not count for anything.

There's also a question on the screen "just before" the summary screen that asks percentage of time it was rented the whole year. That question needs to be answered "AS IF" it's asking percentage of floor space that was rented, because for that specific and explicit situation, that's what the question "should" be asking.