Is the house that I lived in the entire year but rent out rooms (2) for Airbnb considered a rental property? The rooms were rented for 159 days of the year.

[DawnC0 · Accepted solution]

Yes, it is considered rental property.  You must divide your expenses between rental use and personal use. In general, your rental expenses will be no more than your total expenses multiplied by a fraction; the denominator of which is the total number of days the dwelling unit is used and the numerator of which is the total number of days actually rented at a fair rental price. 

Only your rental expenses may be deducted on Schedule E (Form 1040). Some of your personal expenses may be deductible on Schedule A (Form 1040) if you itemize your deductions.

https://www.irs.gov/publications/p527

[david-salgado92]

Thank you for your quick response! When entering the information, for the question that says "number of days of personal use" do I subtract the number of days the property was rented from 365? Even though I used the property for personal use the entire year?

[DawnC0]

Yes.  And when you enter your expenses, enter the full amount and TurboTax do the math to report to correct amounts on Schedule E (rental)  and Schedule A (personal).