How to enter rental property that is part year airbnb and part year long term rental

Forum|Forum|1 year ago
April 15, 2025
1 reply
12 views

New client has a rental property that was an Airbnb. The city ordinance no longer allows property to be rented as an Airbnb.

The property became a long term rental in October.

Is there a way to split the other passive exception and the passive activity on Schedule E. I can't find any instructions in PS as to how to do this.

Thank you.

ProSeries Professional

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Best answer by TaxGuyBill

Off the top of my head, my first inclination is to enter it as two properties (one for the first part of the year and the second for the second part of the year).

T

TaxGuyBillAnswer

Level 15

Off the top of my head, my first inclination is to enter it as two properties (one for the first part of the year and the second for the second part of the year).

D

david3Author

Level 7

Thanks.

Now I'm trying to determine how to continue the depreciation for the long-term rental property in PS, so that the depreciation life continues and doesn't start over for 27.5 years.

The property was put in use on 7/1/19 as an Airbnb and converted to a long-term rental on 8/7/24. I entered 8/6/24 as the disposal date on the Airbnb Sch E Worksheet to stop depreciation. I then entered 7/1/19 as the date acquired and 8/7/24 as the date placed in service for the asset on the long-term rental Sch E Worksheet. I also entered the amount of the accumulated depreciation for the Airbnb asset on the prior depreciation line for the long-term rental asset.

I get an error message stating that the prior depreciation should be blank.

I can't find any instructions in PS for how to handle this. How do I enter this in PS so that depreciation continues on the rental property?

T

TaxGuyBill

Level 15

First question ... were you depreciating it over 39 years or 27.5 years? Short-term rentals are supposed to be depreciated over 39 years (it is used on a "transient" basis).

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