topic re: HSA excess contribution in Investors & landlords

Primary residence converted to rental, expenses look wrong?

mzhang86 — Fri, 21 Mar 2025 07:40:04 GMT

Hi,

In the fall of 2024, I purchased a house and converted the previous house to a rental. I'm trying to add the rental info into TurboTax and the numbers looks wrong.

In the property profile, I entered:

* "2024 was the first year I rented this property"

* "I converted this property from personal use to a rental in 2024."

* Days rented at fair rental price: 92

* Personal use during the year: 0

After entering all of the expense, the full amount of expenses shows up on the rental summary screen. Since the house was only rented 92 days out of the year, I would have expected to see about 25% of the expenses. Was I supposed to have scaled down the numbers myself prior to entering them in? For example, instead of the full property tax amount should I have entered the result of (92/360)*property tax amount ?

Thanks.

Re: Primary residence converted to rental, expenses look wrong?

AnnetteB6 — Fri, 21 Mar 2025 11:18:09 GMT

The numbers for days rented and personal days that you shared look correct. Any expenses for the property are considered from the first day that you advertised and offered the property for rent, which is not necessarily the same as the first day it was rented. The day it was made available is the day the property was converted to be a rental property.

So, any expenses that you entered should only cover the period of time from the day the property was converted to be a rental to the end of the year. You should do that match yourself before you enter the numbers.

Property tax not claimed as part of the rental expense can be claimed as part of your Schedule A Itemized Deductions, if you are itemizing. The same is true for mortgage interest since the rental was your residence before it was a rental.

Re: Primary residence converted to rental, expenses look wrong?

mzhang86 — Fri, 21 Mar 2025 17:17:10 GMT

Thanks for the response, it sounds like I’m on the right track so far.

Previous years I’ve taken the standard deduction since I don’t have that many deductions.

Just to make sure I’m understanding it correctly. Let’s say the property tax was $1000 and assuming I’m taking the standard deduction this year, I should enter $251 for the property tax expense for the rental?

Re: Primary residence converted to rental, expenses look wrong?

RobertB4444 — Fri, 21 Mar 2025 22:05:48 GMT

You are correct.

@mzhang86

Re: Primary residence converted to rental, expenses look wrong?

mzhang86 — Sat, 22 Mar 2025 05:56:07 GMT

Thanks Everyone!

re: HSA excess contribution

Tax2019Pay — Sun, 23 Mar 2025 04:56:14 GMT

Re: Primary residence converted to rental, expenses look wrong?

BillM223 — Mon, 24 Mar 2025 20:18:51 GMT

Please go look at this thread where I answer this question for you. When introducing new issues, it is good to create a new thread here.