Case Study 4: Personal Use of Rental Property
On February 28 last year, Trent moved out of the house he had lived in for six years because he accepted a job in another town. He rented his house at a fair rental price from March 15, last year, to May 14, this year. On June 1, this year, Trent moved back to town and moved back into his house. Can his house be counted as personal use?
Because he rented his property for 12 or more consecutive months, his use of the house is not counted as personal use. Since these days are not counted as days of personal use, the limitations on deductions do not apply.