Hi Mark & Matt,
I’m ass deep in muddy waters with an Oregon house hack and need clarity. I had a 30 minute meeting with one of your CPA agents, but he was unsure of the answer.
I bought a primary residence using a renovation loan in Aug 2023 and did much of the renovation to split the 6 bedroom house into a 4 bedroom rental unit with an attached 2 bedroom ADU (to be my new primary residence). During the renovation I lived in the ADU side, but then ended up moved to the other unit in Aug 2024, as I put the ADU in service with a long term tenant. I still need to refi the property and want to do it when it’s my primary residence.
I’m willing to do whatever it takes to make REPs status for 2024, as I don’t anticipate achieving it in the near future. I am a part time nurse and will have worked 1300 hours in 2024. I have logged
950 hours in total remodel time but, I failed to split out the hours spent working on each respective side. I have an additional 600 hours from self managing 3 other units.
Depending on how many of the remodel hours I can count, will determine if I stay and rent out 3 of the 4 bedrooms or move out completely and place it into service by the end of the year.
Can I count any/all/a portion of the remodel hours towards REPs even if it was “my primary” for part of the year?
How do I count remodel time spent on the share/common areas on the property?
Can I write off a portion/all of the utilities/mortgage interest etc before the units went into service?
After moving out in 2024, how long do I need to be away from the property before I can I move back in to reestablish it as my primary so I can refi?
Teach me OB1 & Yoda!
Thanks
Jill