On Form 1040, Schedule E, we have to divide 365 days in the year into "Fair Rental Days" and "Personal Use Days".
My scenario:
A tenant moved into my house on 1/1/2015.
He paid rent for the months of January, February, and March.
Starting in April, he refused to pay rent.
The eviction case ran it course from 4/1/2015 to 7/1/2015.
From 4/1/2015 to 7/1/2015, he continued to live in my house, but never paid any rent.
He was evicted on 7/1/2015.
Do April, May and June count as "Fair Rental Days" or "Personal Use Days"?
Schedule E instruction
https://www.irs.gov/pub/irs-pdf/i1040se.pdf
page 5, middle column, 2nd paragraph says:
"A day of personal use is any day, or part of a day, that the unit was used by:
.....
Anyone who pays less than a fair rental price for the unit"
A fair rental price is $2000/month specified in the rental contract. If he paid $0/month, does that mean "he paid less than a fair rental price"?
I think the answer is absolutely "yes". $0 is less than $2000.
If the answer is "yes", then according the above statement by IRS, are April, May and June "Personal Use" days?