No Days Rented for bedroom in dwelling unit discontinued in 2023

[Dakotasteve]

I have a question I am hoping someone can help me with this one.  I have a client who had been renting a bedroom to a teacher for the past couple of years.. The tenant discontinued renting the bedroom in late Dec 2022.  In 2022 the rental activity was reported in Pro Series Basic edition on Schedule E with related deductions allocated for expenses and depreciation, etc.  The taxpayer held the room for rent in 2023 but it remained vacant throughout the year and no rental revenue was received in 2023.  To complicate matters, the taxpayer told me she converted the vacant room in December 2023 to personal use.. Based on my understanding of the IRS regs, I have no days of rental use as no days were rented in 2023 and the room was used as a "home" for 31 days.  What I understand is that since there were no days rented (obviously less than 14 days), I shouldn't use Schedule E for 2023. Is there any problem with discontinuing the Schedule E rental activity that was reported in 2022 but no Schedule E for 2023?  

Thanks for any advice anyone can provide to me!

Sal C 

Los Banos CA 

Thanks for any help offered to me on this one!

SteveC 

Los Banos CA 

[Skylane]

If TP genuinely held room for rent and actively sought a tenant I’d probably be okay with showing as unoccupied rental…. but when decision to convert to personal use was made, I’d suspend depreciation (change business use on asset sheet to .01) and stop deducting rental expenses…. Don’t file such e in 2024

[Dakotasteve]

Thanks much for your advice!  I was trying to find the best workaround for this situation!

Sal C

Los Banos