There is a recent Oregon Tax Court case (Hutsenpiller v. Dep't of Revenue), which offers some useful cites to Tax Court cases regarding this matter:
Diligent and bona fide efforts
Particularly where taxpayer offers the property for rent but fails to secure a lease, courts consider whether the taxpayer made diligent and bona fide efforts to rent the property. See Robinson v. Comm'r, 2 TC 305, 307 (1943) (finding for taxpayer based on "diligent efforts" of two real estate firms, even though house was not rented or sold during two tax years at issue); Sherlock, 31 TCM (CCH) 383 (finding for taxpayer despite failure to secure a rental for two years because offer to rent was bona fide and on reasonable terms); Hudson v. Comm'r, 41 TCM (CCH) 1253 (1981) (finding property was not held out for rent or for profit-making purpose after taxpayer failed to rent apartment for over five years due to the lack of "decent" or "desirable" tenants); Foster, 60 TCM (CCH) 466 (finding for taxpayer who listed condo for rent through a real estate agent, even though condo was vacant for two years); Redisch, 109 TCM (CCH) 1493 (finding against taxpayer based on agent's "minimal" efforts to rent: featuring it in a portfolio in the company office and showing it as a model to prospective buyers).
Furthermore, per Redisch v. Comm'r (
https://casetext.com/case/redisch-v-commr), please note the following:
"Whether an individual converted his personal property to one held for the production of income is a question of fact that "depends on the purpose or intention of the individual, as gleaned from all of the facts and circumstances". In the case of a converted residence, the Court often looks to five factors to determine the taxpayer's intent: "(1) the length of time the house was occupied by the individual as his residence before placing it on the market for sale; (2) whether the individual permanently abandoned all further personal use of the house; (3) the character of the property (recreational or otherwise); (4) offers to rent; and (5) offers to sell." No one factor is determinative, and we consider all of the facts and circumstances.
Grant v. Commissioner, 84 T.C. 809, 825 (1985), aff'd without published opinion, 800 F.2d 260 (4th Cir. 1986).
Grant v. Commissioner, 84 T.C. at 825; Newcombe v. Commissioner, 54 T.C. 1298, 1300-1302 (1970).
Saunders v. Commissioner, T.C. Memo. 2002-143, aff'd, 75 Fed. Appx. 494 (6th Cir. 2003)."
My question would simply be: "What is the date on which the property was first offered for rent?" That date would be the determinative factor in addressing the question of when it was first "held out for rent".