Steve wrote:

- quote -

This is not personal use, you're reading Pub 527 correctly.

-Will

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"Steve" <srm72499[at]aol.com> wrote:

- quote -

The house became a rental property the day you placed it on
the market for rent. You can only take depreciation from
that day forward. Any money you spent to fix it up for rent
that improved the property have to be added to basis, not
expensed. Any REPAIRS required to make it rentable are
expensable. Read up on the difference in REPAIRS vs
IMPROVEMENTS if there is a question. For instance, if the
cooktop had an element that didn't work and you fixed it,
thats a repair. If you put in a whole new cooktop, thats an
improvement.

Also, learn the difference in taxation of a home owned and
lived in 2 years or more, then sold vs. sale of a rent
house. The first is not taxed...the second is. I bring this
up in case you might be considering sale of the property. As
time passes, your ability to qualify the house as a
residence slips away.

Mike Lewis, CPA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

I own and lived in a house since 2001. I moved in Aug 2004,
but decided to hold on to the house and rent it out. I do
all of the rental stuff myself.

Is the time from Jan-Aug considered personal use (hopefully
not so I can deduct the loss from my non-rental income...).
Pub 527 pr6 ex1 seems to indicate "no," if I rent it out for
12 months. I plan on renting it for more than 12 months,
but it will not be 12 months by the time I file (it wasn't
12 months in the example, either).

Is this considered time of personal use, and can I deduct
the loss from my general income? Thanks.

-Steve

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->