STR taxes with material participation on a previous primary residence

[Brandon Warren]

I converted my primary residence to an STR around June after living in it for a year. The title and mortgage are still in my name and not transferred to my LLC. I meet all the criteria for material participation and average stay under 7 days so I would be looking at a nice tax deduction against my W2 income. I'm curious if my living in the house before converting it is going to prevent me from leveraging this tax strategy. I know you're not supposed to use the property for more than 14 days for personal use, but how does that work when the property was converted to a rental mid year?

Thanks in advance for any insight!

[Sean O'Keefe]

@Brandon Warren 

Provided you didn't exceed 14 days of personal use after "placing the property in service" (e.g. making it ready and available to rent) converting the STR in June 2023 doesn't disqualify your property from meeting the IRS requirements for STR.
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