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All Forum Posts by: Heather Kavarana

Heather Kavarana has started 1 posts and replied 3 times.

Post: rental expenses divided between rental and personal use?

Heather KavaranaPosted
  • Kaysville, UT
  • Posts 3
  • Votes 0

Steven Hamilton II
I'm thinking I should find someone else to do it. Should I file for an extension or do I still have time?

Post: rental expenses divided between rental and personal use?

Heather KavaranaPosted
  • Kaysville, UT
  • Posts 3
  • Votes 0

If I'd known how much trouble this would be I would have done that too but I was so worried about getting bad tenants I wanted to find someone who would take care of it, not rush into it like that.

When we moved out of that house it was ready to be rented. After about a month on the market with only one request to sell the house we decided to start doing the repairs I listed, nothing critical except maybe the leaking shower head. We did them one (or two small ones) at a time so we were always ready to rent it. None of the repairs were major, we spent less than $1200 total.

I agree, I think H&R software is too stupid. I'm a little ticked off because they won't let me change the values on the form and if I try they say I can't e-file. Back to pen and paper or just cut my losses and try TurboTax next year? Hmmm.

Post: rental expenses divided between rental and personal use?

Heather KavaranaPosted
  • Kaysville, UT
  • Posts 3
  • Votes 0

First the details. We went under contract on our new house end of January2012. Early February we started telling everyone we know that we were moving but keeping our old house to rent and that it would be available to rent as soon as we moved if they knew of anyone interested. We moved March 1 and had the place ready to be rented March 4. It ended up being vacant (but ready to rent) for 103 days, we were occupying it 63 days and it was rented 200 days. Since it was vacant we decided to get some repairs out of the way mostly starting in April (wall dents, painted a few rooms, replaced a leaking shower head, and painted the cabinets). We also paid someone to mow the lawn while it was vacant and to clean the house before the renters moved in. We of course also paid for utilities while it was vacant. Our tenants pay us rent and also are responsible for house and yard maintenance and utilities. So my problem is that the H&R software keeps decreasing almost all of our expenses by about 20% even though they are clearly rental expenses, not expenses while we were living there. In IRS p527 Chapter 4, “Property Changed to Rental Use” it says that yearly expenses “such as taxes and insurance” must be divided between rental and personal use. Why are my rental expenses also being divided?