We converted our short-term rental property to a second home at the end of April (so roughly 1/3 rental and 2/3 second home). I understand that the 1/3 portion of our expenses corresponding to the time the home was rented is entered as an expense in Schedule E, and the 2/3 portion corresponding to the time it was a second home is entered in Schedule A (and of course, only taxes and interest are eligible as Schedule A deductions).
But Turbotax doesn't seem to want to do that for me. It never asks for the date I converted it, so I guess it can't. But is there a way to get it to handle it, or do I have to do it by hand ? There's a later question "did you own this rental property for all of 2024 ?" I tried entering "no", whereupon it asks for the date we "sold" it. But it still doesn't pro-rate. the expenses (for example, it puts the depreciation amount that it'd be if we owned it for the entire year, subject to precent of business use).
Is there a way to get Turbotax to handle this ? Or do I need to do it all by hand ?
A further complication, we never actually rented it during the first 1/3 of the year, even though we were attempting to. (This to meet the 24 month safe-harbor rule for business use for the 1031 like-kind exchange we did when purchasing the property).