Converting home to rental use

Forum|Forum|1 year ago
April 12, 2025
1 reply
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Need to know how to enter info for schedule E. Home converted to rental use 7/1. Time before the rent started is not considered personal use per IRS publication. I entered the days of rental use and 0 for personal use. System wants me to enter days of personal use.

Lacerte Tax

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George4Tacks

Level 15

0 is generally not recognized by Lacerte as ZERO. If ZERO is wanted you would enter -1. In this case, I think leaving the entry blank works.

When you add the depreciation, use 7/1 as date put in service for the cost of the home & improvements up to date, but I would add land with an original purchase date, just for reference purposes. Allocate land/improvements based on some logic for when the home was originally purchased. Property tax bill at that time is a logical method, but not necessarily correct or the best method. Honestly I have never had an audit on that issue in 50 years.

Answers are easy. Questions are hard!