Multi Unit Home (NJ)

Forum|Forum|3 years ago
February 19, 2023
1 reply
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I own a 2-family home in NJ. I lived on one side (A) and rented the other side (B) from 2012 through 2018. In 2019 a family member moved in (side B) that I don't charge rent from. When TT asked what share of property I own, I answered 100%. When TT asked what share of the property I used, I again answered 100%. Basically, since I'm not "renting" (collecting rent money) unit "B", I'm considering both sides (units A and B) as being used by me and simply letting another person stay there (unit B). Is this correct?

Carl11_2

Employee

When TT asked what share of property I own, I answered 100%.

Assuming you were the only buyer when the property was purchased, you have "always" owned 100% weather a unit was rented out or not. Depending on how you reported it in TurboTax (there are multiple ways) your rental percentage may have been less than 100%. But it doesn't change the fact you always owed 100% of the property.

The property should be converted back to personal use, with a conversion date of one day after the last renter moved out, or the day you decided to stop attempting to rent it; whichever date is last.

That conversion should have occurred in 2019 before the non-rent paying family member moved in. Then 2019 would be the last year you would report that property on SCH E.