This is a topic that I have been trying to understand for quite some time. I've really enjoyed seeing that it is being discussed here for there are little outlines or specific guidance I've been able to find in tax law. With that being said there was a reply to your message that I'm also interested in seeing a response to. I'm not looking to depreciate a camper as I understand it's probably not worth that much paperwork but what I am looking to understand is something aforementioned regarding other expenses.
When camper is put into business use for lodging by a traveling sole proprietor who would otherwise be eligible for other lodging expenses, they do incur maintenance expense, utility expense (propane), sewage maintenance and other minor supply needs- directly necessary for the production of the business that requires overnight travel and lodging. This is not their tax home but in a sense, they are maintaining an office space, and lot rent for that space as well. I've been doing my best to properly allocate - as these should be necessary business expenses on a schedule C.
I'm leaning toward the lot rent going under overnight travel expense, and the others under supply and office maintenance, but could you clarify for me - When a repair has to be made on this camper so it can continue to be used for the business, what do you think that would be classified as? What about the insurance on it? Office insurance? These ordinary expenses have got to fit in some how. Listing it as a 2nd home and doing a home office deduction makes sense but there is no mortgage or payments on the camper. I've considered even listing it as additional square footage to the main home so office (and replair) percentages can be expensed, although, I think there's got to be a more defined way to do it.
Any ideas?
Thanks for your time
