Vacation Home Rental

Oct 14, 2006 1 Replies

IRS Pub 17 says that dwelling unit is used as a "home" if used for personal purposes *more than* *the greater of* (1) 14 days or (2) 10% of the total it is rental at fair rental.



After having CPA and PA give conflicting interpretation, I'm not sure but I think this means that:



If my personal use is 20 days, I must rent it at least 200 days to deduct expenses as a production of income property, i.e. deductible loss on schedule E.



Is this a valid example of the second condition (2) above, the 10% not having been breeched but being the greater number of days?



(The loss of course would be passive loss for me, separate issue.)



Thanks.



"Gil Faver" vacation days, even if your family is having a ball while you are working

Even if you spend some time looking around for someone to work on the house and the rest of the time having a ball with the family, it will still count as a business trip. The IRS is flexible as long as you don't overdo it and try to claim a lot of unnecessary trips.

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