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New Member
posted Jun 3, 2019 10:44:21 AM

How is indirect operating expense for vacation rental property calculated

I did not enter this number in my list of expenses.  But it appears in the summary and in the tax return.  TurboTax has apparently calculated it - but how?  and what does it cover?  Is it a correct expense? thx

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New Member
Jun 3, 2019 10:44:22 AM

Prop. Regs. Sec. 1.280A-3(d)(3) states that the same total-fair-rental-days-total-days-used formula applies to allocate the portion “of any item” to rental use.

Turbotax uses the IRS methods.[edited a miscopy]

If you’re looking to claim the most tax breaks possible, you need to carefully track the amount of time you and your family spend at your vacation home.

If you personally use your property and sometimes rent it to others, special rules apply. You must divide your expenses between the rental use and the personal use. The number of days used for each purpose determines how to divide your costs.

Renting Your Vacation Home

https://www.irs.gov/uac/newsroom/renting-your-vacation-home-1

 To figure your deductible rental expenses and any carryover to next year, use Worksheet 5-1. 

This worksheet will give you the basis for what Turbotax calculates behind the scene.

 Personal Use of Dwelling Unit (Including Vacation Home) 

https://www.irs.gov/publications/p527/ch05.html