I rented it out about half the year, and the other half of the year was personal use.
A taxpayer who owns rental property completes Schedule C when they provide “substantial services” to the tenant. The IRS defines “substantial services” as “regular cleaning, changing linen, or maid service.” If you meet these criteria, you need to report your rental income and expenses on Schedule C.
if you don't meet the requirements for filing schedule C, then by definition real estate rental activities are passive
with active participation real estate rental losses can be limited if your adjusted gross income is over $150K see form 8582.
here are the rules if schedule C does not apply
1) was the property used personally the greater of 14 days or 10% of rental days? since you used it personally for 1/2 the year the answer is yes
2) was the propety rented for less than 15 days. the answer is no
result
treat as a dwelling unit used as a home. prorate expenses between personal and rental use. The rental portion of interest and taxes is not limited to rental income (but you may be subject to passive loss limitation as noted above so see form 8582). the deduction for other expenses is limited to any remaining income. carryovers are allowed
i would not be concerned about the nomenclature Turbotax uses for the portion of rental expenses that are not currently deductible.
