*IF* (and that's a big *IF*) you told the program to allocate/split things for you, then enter *exactly* what the program asks for, and it takes care of it. You absolutely must pay attention to detail on each and every screen. Even when you elect to have the program do the splits for you, there are some things it can't split. So read the small print on every screen. The small print matters - BIG TIME!
Note that insurance is not split. But the program will allocate for the rental portion. Insurance for the period of time it was not a rental is not deductible anywhere.
Also, if you pay HOA fees the program can't allocate those no matter what. So you should only enter the fees paid during the time the property was classified as a rental.
Rental Property Dates & Numbers That Matter.
Date of Conversion
- If this was your primary residence before, then this date is
the day AFTER you moved out.
In Service Date - This is the date a renter "could" have moved
in. Usually, this date is the day you put the FOR RENT sign in the front yard.
Number of days Rented - the day count for this starts from the first day
a renter "could" have moved in. That should be your "in
service" date if you were asked for that. vacant periods between renters
count also PROVIDED you did not live in the house for one single day during
said period of vacancy.
Days of Personal Use - This number will be a big fat ZERO. Read
the screen. It's asking for the number of days you lived in the property AFTER
you converted it to a rental. I seriously doubt (though it is possible) that
you lived in the house (or space, if renting a part of your home) as your
primary residence or 2nd home, after you converted it to a rental.
Business Use Percentage. 100%. I'll put that in words so there's no
doubt I didn't make a typo here. One Hundred Percent. After you
converted this property or space to rental use, it was one hundred percent
business use. What you used it for prior to the date of conversion doesn't
count.
