We starting renting our house mid-year. A small amt of the depreciation was allocated towards a vacation home limit loss. I don't understand why. Please explain.

[lisadale1212]

2020 we bought a home and rented out home out starting in August.  The Schedule E has a small amount allocated towards a vacation home limit loss. It's not a vacation home so why is it there?  And will it screw up my taxes for next year once it's a full year rental?

[ColeenD3]

You probably included personal days. Unless you used the home as a residence, there were no personal days. Say that you rented it all year.

[lisadale1212]

So do I put zero personal days?  We lived there up until the time it was rented.  

[lisadale1212]

Just to confirm, I should put zero days of personal use, even though we lived there for 212 days, and was rented for 153 days. And the we owned it for 365. Is that correct? Or are you saying we should should say it was rented all year when it really wasn’t? 

[lisadale1212]

Hi, can you please confirm what I enter if we lived in the home until we rented it.  Are they personal days if we did live there until it was rented?

[ColeenD3]

Yes. You did not have personal days co-mingling with rental days. It was converted from personal to rental. It was not rented all year. For the amount of time it was rented, it was fully a rental property.