Question

Primary residence convert to rental then converted back to primary residence

Forum|Forum|1 year ago
November 26, 2024
2 replies
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Confirming accuracy.

Lived in primary property from 1/1/22-2/28/22.

Converted primary to rental 3/1/22-2/28/25.

Will move back into rental as a primary residence 3/1/25-12/31/25.

Therefore, schedule E should be:

2022: 0 personal use days and 305 fair rental days

2023: 0 personal use days and 365 fair rental days

2024: 0 personal use days and 365 fair market days

2025: 0 personal use days and 59 fair market days

Because both times I occupied the property as my primary property those days are NOT considered personal use days, correct?

Rental Property

F

FrankiesMomAuthor

Anyone?

M

Mike9241

flowchart to determine the tax treatment of your home with rental and personal use. each year stands on its own:

1) was personal use of property more than the greater of a) 14 days or b) 10% of days rented (personal use includes days used as your dwelling unit) if yes then

2) was the property rented at fair value for less than 15 days, if no then

3) treat as a dwelling unit used as a home. prorate expenses bwtween business and rental use.

see iRS tax topic 415

https://www.irs.gov/taxtopics/tc415

F

FrankiesMomAuthor

Confirming accuracy.

Lived in primary property from 1/1/22-2/28/22.

Converted primary to rental 3/1/22-2/28/25.

Will move back into rental as a primary residence 3/1/25-12/31/25.

Therefore, schedule E should be:

2022: 0 personal use days and 305 fair rental days

2023: 0 personal use days and 365 fair rental days

2024: 0 personal use days and 365 fair market days

2025: 0 personal use days and 59 fair market days

Because both times I occupied the property as my primary property those days are NOT considered personal use days, correct?

AmyC

Employee

Correct! Personal use days are meant for while it is a rental property. If you don't have a family member visiting or some other such personal use reason, your rental property would be zero days of personal use while available for rent. Your property will be mixed use for the years you move in and out -which is why you were given a link to an IRS tax topic above.

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