High Expenses yet below 15 threshold

[Yeti]

Considering a Townhouse with limited short term rental days

-rented 20 days in 2019

-rented 9 days in 2020

-Available for rent an additional 15 days in 2020

-Personal use remaining days in 2020

-high 2020 expenses for repairs

Concerned will not be a able to claim nor carry forward the high 2020 expenses since below the 15 day threshold for 2020.  Have not been able to rent more days due to COVID.

Any path to being able to claim/ carry forward the 2020 expenses?

[tagteam · Accepted solution]

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@Yeti wrote:

Any path to being able to claim/ carry forward the 2020 expenses?

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Even if you were able to satisfy the (less than) 15-day rule of Section 280A(g) (by renting for 15 days, or more, for the 2020 tax year), you would still most likely have to divide your total expenses between rental use and personal use based on the number of days used for each purpose.

See https://www.irs.gov/taxtopics/tc415

[Yeti]

Understood. So guess I am stuck now with personal residence for 2020 and not able to carry forward the 2019 losses.

Planning on renting again/more in 2021. (greater than 60 days)

How about the 2019 carryover losses for 2021?  Since 2020 will be personal residence will I still be able to carry forward the 2019 losses to 2021?

thx u

[tagteam]

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@Yeti wrote:

How about the 2019 carryover losses for 2021?  

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Those losses are carried forward first to 2020 and then to 2021 (if unused which appears likely to be the case).

[Yeti]

OK, sounds easy enough and will give it a shot. Was under impression the since under 15 days there is no 'rental' info/asset for 2020 and therefore no place to enter the 2019 carryover losses to 2020 filing. thx u