Investors & landlords

it would seem different versions of Turbotax ask different questions

Was <place> rented every single day in 2021? - this is misleading. Turbotax should have added after converting to rental 

 

 

 

in desktop deluxe

right below where it asks for personal use days it makes this comment:

the number of days during the year you lived in the property before converting it to a rental do not count as personal use days and should not be entered as personal use during the year.

 

in addition under "what's more" it states: in the year you convert your property from personal use to a rental the days you lived in the home as your primary residence prior to conversion do not count as personal use days

 

thus I conclude you should enter 0 as personal use days

 

there are two ways to allocate expenses.  

1) manually thus when you get to taxes you would only enter $3620. you would then have to enter the personal portion when you get to itemized  deductions

2) in forms mode on schedule E you would check P to allocate and for Q you would enter to 6 decimal places 72.6027 (265/365 = rental use). this automatically carries the personal portion of deductible expenses to Schedule A.

 

 

if you are over the mortgage balance limit you will have to do manual calculations if the interest deduction on schedule A needs to be limited.