Rental to second home then sold

[Rubytue]

I hope this kind of question is allowed, I really stumped and don’t know where to turn. 

We had a tenant occupied house 2011-Dec 2019. For pandemic reasons, my husband lived in the house March 2020-August 2020, while I stayed in the primary residence. House was sold in October. 

I know how to deal with the passive gains and recapture stuff. But, for 2020, does it count as a second home for interest and tax deductability? Filing jointly. 

[KrisD15 · Accepted solution]

Yes.

If the house was no longer being held as a rental in 2020, enter the date it was returned to personal use and treat it as a second home from that time forward. 

Yes, once it was no longer a rental, taxes and interest could be claimed on your schedule A if all other requirements are met (loan secured by home, used to buy build and/or improve the home).

[Rubytue]

Thanks! Unplanned fluke of 2020 turns out to help now!