JGE <
johng...@gmail.com> wrote:
> We have a house classified as "vacation/short-term rental" on Schedule
> E. There's a "14-day rule" that's critical in deciding if a house is
> a personal residence or a business, described in sites such as this:
>
>
https://www.vacasa.com/homeowner-guides/vacation-home-tax-rules
>
> My question, if one owns the house for less than a full tax year, or
> changes its status during the year, are the 14 days pro-rated, that
> is, is the number 14 reduced according the percentage of the year that
> the house was owned or considered a business ?
>
> For example, we purchased the house at the end of April 2022, so owned
> it roughly 2/3 of the year. Does that mean we were only allowed to
> use it for personal use 9 or 10 days (during the portion of 2022 we
> owned it) ? Does it mean we only needed to rent it for 10 days to
> satisfy the threshold to consider it a business ?
>
> Similarly, if we convert it to being a 2nd residence during 2024,
> roughly 1/3 of the way into the year, can we only use it for personal
> use 4 or 5 days during that first 1/3 of the year that we considered
> it a business, and need we rent it only 5 days ?
principal residence. It doesn't give any time requirements, and does not