Question about Fair rented days and Personal use days

[jayb07]

Hello,

I have owned and lived in my condo since Sep 2023 and in 2024, I rented out one of the two bedrooms for 61 days while I lived in the other bedroom and shared the common spaces. For the remaining of 305 days, I used the bedroom that I rented out. What would be my Fair rented days and Person use days?

Thanks!

[SabrinaD2]

Fair Rental Days

These are the days you rented out the bedroom. For example, if you rented it for 61 days in 2024, those are your fair rental days.

Personal Use Days

These are the days you used the bedroom for personal purposes. If you used it for the remaining 305 days in 2024, those are your personal use days.

FYI IRS Guidelines

If you rent a dwelling unit to others that you also use as a residence, limitations may apply to the rental expenses you can deduct. You're considered to use a dwelling unit as a residence if you use it for personal purposes during the tax year for a number of days that’s more than the greater of:

1. 14 days, or
2. 10% of the total days you rent it to others at a fair rental price.

Example

Since you rented your bedroom for 61 days in 2024 and used it for personal purposes for the remaining 305 days. Since 305 days is more than 14 days and more than 10% of the rental days (6.1 days), the property is considered a residence. Therefore, generally you must divide your expenses between rental and personal use, and you cannot deduct rental expenses that exceed your gross rental income.

[Edited 02/26/2025|9:16 pm PST] @jayb07

[jayb07]

Thank you!

But it says on the screen "Don't include any days when the property was vacant or days you lived in the property (before it became a rental) as personal use." especially the part don't include days you lived in the property (before it became a rental) as personal use. So if I rented out on 9/1/2024, I cannot include days before that in 2024?

Also, to what you said "Therefore, generally you must divide your expenses between rental and personal use, and you cannot deduct rental expenses that exceed your gross rental income.", does turbotax automatically do that or I need to divide the expense manually?

[KrisD15]

If it was ONLY used as a rental after the date it was put into service, do not report any personal days. 

No, if the rental was put into service (available) 9/1/2024, allocate YEARLY expenses 25/75 for the four months it was a rental. (1/3)

Direct expenses are claimed in full such as the monthly utility bill. 

TurboTax will automatically limit the loss if applicable. 

The limit is based on your total income (rental and all other) as well as whether you materially participate in the rental. 

[jayb07]

I rented out a bedroom/bathroom in my 2 bed 2 bath condo from 9/1/2024 to 10/31/2024 so a total of 61 days and I lived in the condo all year and I used that bedroom I rented before it was rented out and after the rental ended on 10/31. 

I chose the following for my situation of Vacation or short-term (part of home)

I guess my question is what I should enter for Fair rented days and Personal use days. Is what I entered below is accurate? If not what are the days for these boxes

Appreciate your help!

[AmyC · Accepted solution]

You didn't convert your whole home to a rental. Everything else looks great!

[jayb07]

Thank you!