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I converted my personal property to rental. I hired property management on 8/13, house was on the market on 8/22, rented on 9/6. Which date should I use to pro-rate?

 
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5 Replies
Carl
Level 15

I converted my personal property to rental. I hired property management on 8/13, house was on the market on 8/22, rented on 9/6. Which date should I use to pro-rate?

Your in-service date is the first day a renter "could" have moved in.  Your "days rented" (if asked) starts on the first day a renter "could" have moved in. Doesn't matter if if took you 3 months to actually get a renter in there either.

Your days of personal use (if asked) is *ZERO*. read the small print on that screen.

 

 

I converted my personal property to rental. I hired property management on 8/13, house was on the market on 8/22, rented on 9/6. Which date should I use to pro-rate?

I don't understand. So what date should it be? The date that the property is available for rental, not necessary the date the renter started paying rent? Why is the date for personal use zero? I have been using it for personal purpose for some time before converting it to rental property.

AnnetteB6
Employee Tax Expert

I converted my personal property to rental. I hired property management on 8/13, house was on the market on 8/22, rented on 9/6. Which date should I use to pro-rate?

The date that the property was advertised and available for a renter to move in is the date that you placed it in service as a rental property.  Based on your information, that date is probably 8/22 since you said that is when it was 'on the market'.

 

The reason your personal use is zero days is because the property was not considered a rental property when you were using it for personal purposes.  The question is asking about any personal use days after the property became a rental property.  You would only enter a number for personal use days if you used it personally after the date it was placed in service as a rental (for example, it is common to have personal use days for a vacation rental, but not for a long-term rental situation).  

 

@lizshh

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I converted my personal property to rental. I hired property management on 8/13, house was on the market on 8/22, rented on 9/6. Which date should I use to pro-rate?

So it the house was ready for move in on 8/19, it should be 8/19, right?  It took the property management company a few days to post it online.

RobertG
Expert Alumni

I converted my personal property to rental. I hired property management on 8/13, house was on the market on 8/22, rented on 9/6. Which date should I use to pro-rate?

Correct.

 

August 19 was the date a renter could have moved in, so it is the date placed in service as a rental.

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