RaifH
Expert Alumni

Investors & landlords

Do not enter personal days if you have not used the property for personal use since converting it to a rental. Property that is a mix between personal and business use is treated differently by the IRS than a property that is exclusively used as a rental, even if it was converted during the year.

 

If the property is used both as a rental and for personal use, as with a vacation rental, operating expenses for the property, such as repairs and taxes can be deducted in their entirety, but you can only take depreciation as an expense if there is still income from the rental property after the operating expenses have already been deducted. The remainder of the depreciation that you do not take in this year carries forward to future years.