How do I convert a partial rental of my SFR into a full rental

[pilotjack59]

in 2016, I remodeled and rented out the basement as 40% of the house.  There is a  a depreciation schedule for the house and remodel costs from 2016.  in 2017, I rented one additional room upstairs and then moved out in Nov, spending $10,000 in remodel costs and rented out the entire space except garage

We moved out in Nov to remodel and had rental income for a few weeks in Dec.

How do I enter that 50% of the house was rented all year and 100% in the last 2 months?  Do I count the unoccupied time as a rental (during remodel?) or only when I had a paying renter?

[PatriciaV · Accepted solution]

Your best option is to enter the remainder of the space as a new rental property. This allows you to report income and expenses separately, as well as different rental days for the separate spaces. Add as many rental properties as you need to cover the spaces that were rented separately. The rental asset (house) would be the same for both/all, but the square footage would be different (as would the depreciation).

If you decide to combine the spaces at some point and rent the entire home to one tenant, you would probably stop reporting the separate spaces and begin a new rental property. It's important to keep good records, especially the Depreciation Report from your tax return, for future reference.