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Schrochem
New Member

I'm confused by personal use days AFTER converting a rental to my main residence.

I have been renting my house for over 10 years. For 2017, the tenants moved out on June,30,2017 and I moved in as my primary residence. I believe I have to prorate the expenses for rental vs personal. However, the help says that personal use is NOT 

* days you used the dwelling as your main home before (or after) renting it, if:

  1) the unit was rented 12 months or more or will be.

I'm confused about the 12 months. It was rented 12 months + before 2017. i.e 10 years. I think I'm misinterpreting this but want to make sure because the refund is drastically different if I say 0 personal use days vs. 185.

1 Best answer

Accepted Solutions
TomD8
Level 15

I'm confused by personal use days AFTER converting a rental to my main residence.

Personal use days in this context means personal use during the period when the property was rental property.  If you did not use the property for personal use between January1 and June 30, and the property ceased being a rental on June 30, your personal use days were zero.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

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3 Replies
TomD8
Level 15

I'm confused by personal use days AFTER converting a rental to my main residence.

Personal use days in this context means personal use during the period when the property was rental property.  If you did not use the property for personal use between January1 and June 30, and the property ceased being a rental on June 30, your personal use days were zero.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
Carl
Level 15

I'm confused by personal use days AFTER converting a rental to my main residence.

Here's the clarification you need.

Days rented - the day count starts on the first day a renter "COULD" have moved in. The day count stops on the day the last renter moved out.

Personal use days - The number of days you lived in the house as your primary residence, 2nd home, vacation home or any other type of personal pleasure use *WHILE THE PROPERTY WAS CLASSIFIED AS A RENTAL*. Typically for your situation, that days of personal use will be ZERO. What you used the property for BEFORE it was converted to a rental does not count. What you used the property for AFTER converting it from a rental back to personal use *does* *not* *count*.

Business use percentage will be ONE HUNDRED PERCENT. While the property was classified as a rental, it was used for business ONE HUNDRED PERCENT of that time. What the property was used for "after" you converted it back to personal use *does* *not* *count* for anything.

I think there are notes on those screens that explain this - or at least the notes try to.

 

MikeMikeNejad
New Member

I'm confused by personal use days AFTER converting a rental to my main residence.

What about the time the property was listed for rental but I couldn't find tenants?

 

Property was ready to move in on may 1st, I myself rented another place for my main residence on may 15th and finally it is rented on june 1st. Does that 30 or 15 days count as personal use?

 

In another word, does rental business  start when I list property or when it is first rented?

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