Carl
Level 15

Investors & landlords

What you cite applies to short term rentals. What defines a short term rental depends on where you look it up. For example, in my county they consider a short term rental to be any property occupied for less than 30 days for any one period during the tax year. But at the state level it's defined as any property rented out for less than 6 contiguous months. The IRS definition is not so clear cut.  So what applies to you depends on the specifics of your given situation.

The situation you describe would not be considered a short term rental by the IRS.

To see a fairly descent example of what you're attempting to describe, check out IRS PUB 527 at https://www.irs.gov/pub/irs-pdf/p527.pdf  On page 17 under "Dwelling Unit (Including Vacation Home)" check out the first example  referencing the "beach cottage" and pay close attention to the dates in that example. It's odd to me that dates outside of the rental classification period count against you. But it is what it is.

If you are planning to rent your property for more than half the year, and occupy it as your primary residence, 2nd home or vacation home for less than half the year, you'd probably be better off leaving it classified as a rental year-round and just reporting your personal use days. What that will do is just pro-rate your deductible expenses of mortgage interest, property taxes and property insurance to account for the time of personal use. However, the program does have it's limitations and in the long run chances are the depreciation will be so far off in a few years that it will matter big time.