Discussion:Vacation Home Rules
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| Revision as of 17:29, 2 April 2009 Wiles (Talk | contribs) (I agree with Sfb) ← Previous diff |
Revision as of 17:57, 2 April 2009 Dnc0716 (Talk | contribs) (If the home is c) Next diff → |
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| {{ForumReplyPost|UserID=Wiles|Date=2 April 2009|Text=I agree with Sfbcpa}} | {{ForumReplyPost|UserID=Wiles|Date=2 April 2009|Text=I agree with Sfbcpa}} | ||
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| + | {{ForumReplyPost|UserID=Dnc0716|Date=2 April 2009|Text=If the home is considered bona-fide rental- no personal usage - then depreciate it from 10/1 since it was available for rent, but if it is intended to be a vacation home, personal usage being greater than 10% of rental usage at FMV or 15 days, then no depreciation for 2008 or expenses allowed. | ||
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| + | The question was ''"For '''vacation home''' personal-use rules, do we have to look only at 10/1-12/31, or do I have to be concerned with the entire year?"'' | ||
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| + | }} | ||
Revision as of 17:57, 2 April 2009
Discussion Forum Index --> Advanced Tax Questions --> Vacation Home Rules
Discussion Forum Index --> Tax Questions --> Vacation Home Rules
| 2 April 2009 | |
| Here's the scenario:
Taxpayer has a vacation home (Tahoe) that has been solely personal use to date. In 2008, they decided to start using it as a rental and as of Oct 1, the property was prepped to be rented and was listed with a rental agency. There were no renters thru 12/31/08. From 10/1/08 to 12/31/08, the taxpayer used the home for 2 days. For vacation home personal-use rules, do we have to look only at 10/1-12/31, or do I have to be concerned with the entire year? | |
| 2 April 2009 | |
| Look at Publication 527, Property changed to rental use. I believe this will answer your question. | |
| 2 April 2009 | |
| Thanks for the response, but it doesn't address the specific issue. The question is not whether to depreciate it for the whole year or deduct expenses prior to 10/1, but only whether personal use during the period 1/1-9/30 needs to be considered.
Logic says no, but logic & taxes don't always mix well. | |
| 2 April 2009 | |
| It wasn't rented for more than 14 days, so don't do anything with it. No deductions or income is required to be reported for "vacation" homes (dwellings units used as a home) rented fewer than 15 days. See pub 527, p.22 for the exception for minimal rental use. | |
| 2 April 2009 | |
| When property is changed to rental use, you don't need to address the personal use period. It became a rental when it changed from personal to rental on 10/1. | |
| 2 April 2009 | |
| They are considering the unit as a vacation home (personal use being > 10% of rental usage or personal use of 15 days or more) so the personal use is still accounted for and since it was not rented for 15 days or more, no inclusion of income or operating deductions is necessary. Deduct mortgage interest and real estate taxes on sch A. Read Pub 527, for a better understanding. | |
| 2 April 2009 | |
| If the home is considered bona-fide rental- no personal usage - then depreciate it from 10/1 since it was available for rent, but if it is intended to be a vacation home, personal usage being greater than 10% of rental usage at FMV or 15 days, then no depreciation for 2008 or expenses allowed.
The question was "For vacation home personal-use rules, do we have to look only at 10/1-12/31, or do I have to be concerned with the entire year?" | |
