Depreciation vs expenses percentages - rental use
As I work through some of the IRS worksheets, I am wondering whether it is normal that there is a difference in the fraction of depreciation one takes on a rental property that was only rented for part of the year, and for deductible expenses incurred during that same year, if the property was idle for a period of time.
For example, if I rented out an apartment for the first eight months, then the apartment was vacant for the remainder of the year (needed some work that I did not have time for), would I be able to claim 100% of the depreciation, but only 2/3 of the deductible expenses for that year ?
Thanks in advance for your help !
Most Popular Reply
@Samuel Kowalsky I would suggest consulting a CPA for this particular situation. First, if this is considered a vacation rental you are allowed a certain amount of personal days each year. Second, there is a rule that days you spent using the property to make full time repairs and maintenance (not improvements) to the property are not counted as personal days. This can be a tricky area so I suggest you consult with your tax adviser who could better assist with whether this applies in your specific situation.