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Investors & landlords
Yes. In the first year of the rental on the day of conversion it is 100% business use. For this year only you should enter the proportional share of property taxes and mortgage interest on the rental and then on your itemized deductions manually. Our awesome Tax Expert @MarilynG1 also provided this option.
This actually makes a clean entry that will carry forward appropriately for 2022. TurboTax will calculate the depreciation correctly based on the business conversion date (placed in service for rental).
If there are other expenses such as utilities you will enter expenses from the conversion to rental date forward for 2021.
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March 24, 2022
7:08 AM