In April 2022, I began renting out my primary home on Airbnb (prior to this it was just my full time primary residence). I rented it roughly 50% of the time, and lived in the house whenever it was not rented. In September 2022, I had to stop renting permanently, so the house then just became my primary home again. For the period between April and September when my house was available for rent, I had 64 "business days" (when it was rented) and 65 "personal days" when I lived there.
I am completing Sch E Rental Properties & Royalties, and I have the following questions:
1) TurboTax is prompting me to depreciate my house. It's my understanding that I shouldn't depreciate my house since the rental started/stopped in the same year and will never be rented again. Is this correct? I see an option to delete the "rental home" as an asset.
2) For my expense deductions that need to be prorated, should I use the proration rate of 49.6% (64 / (64 + 65))? This is the amount of time it was rented while it was considered a rental property/available for rent.
3) There were many furnishings/decor items that I purchased solely because I was renting the home (new beds/mattresses, TVs, portable AC unit, etc) that I wouldn't have purchased otherwise (I didn't know I would have to close the rental). Would these expenses be considered full deductions since I only purchased them because of the rental, or do I need to prorate them since they are in the general home and I still used the home on personal days? (I didn't use the new furniture/TVs/AC/etc during personal days, although there isn't a way to prove/document that)
Thank you in advance!
