[thezman]

I moved out of my house on 10/31/2009 and converted it into rental property. I only have rental expenses (new paint, carpet and minor repairs) but no income for 2009. The house is rented starting 2/1/2010.

Because I lived in the house for 10 (out of 12) months in 2009, can I deduct the expenses on my 2009 tax return or no? My 2009 AGI is low enough to allow the deduction.

Thank you.

[thezman]

Just to clarify, I did not use the property after the conversion to rental. My question is, should I select Yes or No on line 2 of Schedule E (f1040se)? Please see the line 2 text from Schedule E below:

"For each rental real estate property listed on line 1, did you or your family use it during the tax year for personal
purposes for more than the greater of:
-14 days or
- 10% of t he total days rented at fair rental value?"

Thank you in advance for your time and advice.

[AtlantaTaxExpert]

The answer is NO! At a set point in the year, the property ceased being your residence and became a rental property.