Changing rental from "part of home" to "entire building".

Forum|Forum|2 years ago
March 5, 2024
3 replies
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If I rented out part of my home (a room) for a portion of the year and later changed it so that whole home was available for rent for the rest of the same year, should I add that as one property or 2 separate properties?

Best answer by PatriciaV

Your best option is to report these activities as separate Rental Properties. This will allow you to allocate expenses accurately to each period of the year. Look for blue "Learn More" links on the interview pages for help entering the correct information.

PatriciaVAnswer

Employee

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mrhw4ngAuthor

Makes sense to list it as 2 separate properties. Since it's now 2 separate entries, how should I go about entering the Fair rented days and Personal use days for both entries?

Option 1:

Property 1 - Fair rented days 280 / Personal use days 85
Property 2 - Fair rented days 85 / Personal use days 280

Option 2:

Property 1 - Fair rented days 280 / Personal use days 0
Property 2 - Fair rented days 85 / Personal use days 0

Carl11_2

Employee

Personal use days is zero. It's asking for days you occupied the property for personal use *while it was classified as a rental*.

Carl11_2

Employee

There are two ways. The simplest way is to enter the property as a physically separate asset. For example, if you were renting 25% of your property for the first half of the year, and then started renting the remaining 75% of the property in the 2nd half of the year, enter it as another property with 75% business use, assuming the first entry is entered as 25% business use.

PaulaM

Employee

Option 2. Personal use days refers to the days that you personally used that space while it was a rental. Like a vacation home would be used for example.

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