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Updated almost 8 years ago on . Most recent reply
Time preparing soon-to-be rental property counts as personal use?
I purchased a new home for use as a new primary residence in January 2016. I moved out of the old primary residence on the 13th and converted it to a rental property by signing tenants 8 days later. I spent these 8 days preparing the house for rent (e.g. installing new carpet, cleaning) and finding the tenants.
From what I understand, I cannot deduct expenses for the property incurred during personal use. Would anyone happen to know if these 8 days count as personal use?
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You cannot deduct your time; however, you can deduct your expenses such as the new carpet(capitalize and depreciate it) Cleaning etc all must be added to your basis as of conversion.