MaryK4
Expert Alumni

Investors & landlords

If you have more than 15 days/10% personal days, it changes the passive activity classification.  This allows the some of the rental expenses to offset other (nonpassive income), but it limits your deduction for general home operating expenses to the extent that rental income for this property exceeds the fully deductible expenses. The excess expenses are then carried forward.  If you had fewer than 15 days/10 personal days, it is treated as a passive activity, which provides more deductions, but they are all passive so they can only be used against passive income.  See Limit on deductions.

 

 @TomL1 

 

 

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