stop and start rental in same year

[Kea]

Client has been renting a room in her house for the last 3 years. In February of 2007 her tenant moved out and she decided to stop renting out the room. She began using the room as personal. Then in May of 2007, she decided she liked having the income and started renting the room. It is still rented today. It was used for personal service more than 14 days in 2007.

I know the 14 day limit does not apply the year you begin rental or the year you end. What if they are the same year?

Does she lose the extra deductions? Or, do I treat it as 2 assets? Take it out of service in February and then put a new asset in service in May with a basis equal to the ending basis in February? She has decided she likes renting it for the foreseeable future.

Thanks!

[kcjenkins]

I'd be inclined to ignore a stoppage that only lasted 2 months, March and April. But you'll have to decide what YOU are comfortable with.

[Kea]

I'd be inclined to ignore a stoppage that only lasted 2 months, March and April. But you'll have to decide what YOU are comfortable with.

That was my original instinct. But I diligently asked if she had personal use during that time and she said she did. I appreciate the honesty but it does complicate it.

Thanks.