Hello,
In 2023 I started I converted my primary residence into a rental.
The lease was executed on 9/11/23 but the tenant did not move in until 10/16/23. Am I calculating the rental days based on 9/11 or 10/16?
Everything I'm reading is pointing to 9/11.
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@AJ_52 wrote:Everything I'm reading is pointing to 9/11.
If that is the date the property was ready and available to rent, then that would be the date you would use, regardless of when the tenant moved into the property.
@AJ_52 wrote:Everything I'm reading is pointing to 9/11.
If that is the date the property was ready and available to rent, then that would be the date you would use, regardless of when the tenant moved into the property.
Rental Property Dates & Numbers That Matter.
Date of Conversion - If this was your primary residence or 2nd home before, then this date is the day AFTER you moved out, or the date you decided to lease the property – whichever is later.
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 was contracted to move in, and/or "could" have moved in. That would be your "in service" date or after if you were asked for that. Vacant periods between renters do not count for actual days rented. Please see IRS Publication927 page 17 at https://www.irs.gov/pub/irs-pdf/p527.pdf#en_US_2020_publink1000219175 Read the “Example” in the third column.
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, 2nd home, or any other personal use reasons 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.
@AJ_52 wrote:Everything I'm reading is pointing to 9/11.
Yes, make it simple.
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