The number of days a dwelling unit is rented at a fair market rate represents the period during which the property is available for and actively used as rental housing. This calculation excludes days of personal use by the owner or their family, as well as periods when the property is vacant and not actively being offered for rent. For example, if a property is available for rent for 365 days but is used personally for 30 days and vacant for 60 days, the relevant number of days is 275.
Accurate determination of this period is critical for calculating deductible expenses associated with rental properties, especially in situations where the owner also uses the property for personal purposes. This information directly impacts the amount of rental income reported and the allowable deductions, such as mortgage interest, property taxes, and depreciation. Historically, clear guidance regarding the separation of personal and rental use has been essential for compliance with tax regulations and ensuring a fair and accurate reflection of the property’s rental activity.
