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Level 5
February 9, 2022
Solved

How to report rental expenses when rental property was used by taxpayer for 6 months

  • February 9, 2022
  • 1 reply
  • 9 views

Taxpayer owns a residential rental property.  In 2021, they used personally from Jan to June (adult kids lived there) and rented from July to December (is still renting out right now.)

How should we depreciate the property and report rental expenses?  Should we prorate based on the % of personal usage vs tenant occupied?

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Best answer by PhoebeRoberts

You might see if the Vacation Home rules apply.

1 reply

IRonMaN
Level 15
February 9, 2022

Sounds like the date put into use was somewhere around 7/1.

Slava Ukraini!
hgtcAuthor
Level 5
February 9, 2022

Forgot to mention that it has been rented since 2010.  So, I should allocate only 50% depreciation/other expenses for tax year 2021?

PhoebeRoberts
Intuit Community Champion
February 9, 2022

You might see if the Vacation Home rules apply.