below FMV on a rental to family

[Cadams1696]

This year 2023 my current renter is moving out on March and  family members are moving in for the rest of the tax year.  I am renting to them at a below fair market rental value. I am trying to plan in advance for next years tax filing. I know so far that it will be considered personal use and I will be limited in any deductions I can take. After my family members move out I am planning on renting it again at full rental value. My concerns are will Turbo tax keep all my evaluation info for depreciation etc when I again start to depreciate the property in full value rental and how can I make sure the info is not accidentaly deleted next year because it was in personal use for part of the year ????

[MonikaK1]

If you entered your rental property in TurboTax as an asset in the rental section, the program will transfer the information forward to the next year as long as you don't delete it or indicate that the property was sold or otherwise disposed of. 

You can also check to see if similar properties in your area are rented at or near the rents that you are charging.  If so, you can still indicate that you are renting at fair rental value all year.

When you begin the rental interview next year for 2023, answer all of the questions so that TurboTax can determine the status of the property.

See IRS Publication 527 for more information.

See this thread for another discussion regarding rental property not currently for rent.

[Mike9241]

determination of proper reporting is made on a calendar year basis so each year (ie 2023 and thereafter ) stands on its own

1) was personal use (any day rented below market value to friends or family is a personal day) more than the greater of a)14 days or b) 10% of the days rented at fair value

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if yes

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was the property rented for less than 15 days at fair value? 

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if yes treat it as a personal residence  - do not report rental income or expenses. mortgage interest and taxes are reported on schedule A

if no prorate expenses between personal and rental. personal portion of mortgage interest and taxes go on schedule A. rental portion of interest and taxes are not limited to rental income,. other expenses are limited to any gross income from the property, are subject too ordering rules. Carryubvers are allowed.