No deduction for short term rental expenses for days not rented?

6 Replies

If I'm understanding correctly, you can only deduct expenses for the days that your short term rental is rented. For example: If you rent out your property for 250 days of the year, (which would be about 70%) then you have to prorate certain expense deductions. If your electric was $100/month then you can only deduct $70 of that electric expense for that month? Is this correct? Also, is that the same calculation if you are deducting HOA fees? Thanks for the help!!

That doesn't sound right. My accountant is deducting 365 days of utilities, property tax, cable and wifi, gas for mowing,  etc.

The prorating is not based on percentage rented vs. empty, it is based on percentage rented vs. used for personal reasons, but as John said that only applies if used for more than 14 days personally.

So if you rented for 225 days but used it personally 25 days, then your personal use is 1/10th and you can only deduct 90% of your business expenses.

PS - Not an accountant!

Yeah, you get to deduct it 100% if it is solely a rental....

Think about are paying carrying fees to keep the property open so it can be rented. If you completely shut down the property between guests it would be a wreck....