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jess109
New Member

How to properly allocate De Minimis Safe Harbor expenses on a vacation home that is rented occasionally?

If I follow the guidance from Turbo Tax it states to list expenses separately on Sch  E "other expenses".  Doing so will not allocate personal vs. business use %age.  How do I get tt to allocate these expenses?


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Accepted Solutions
PatriciaV
Level 7

How to properly allocate De Minimis Safe Harbor expenses on a vacation home that is rented occasionally?

You may wish to review your entries for both your Property Profile and under Rental Expenses.

If you own less than 100% of the property, or if you rent out part of your home, TurboTax will offer to make the calculations for you and remind you when you enter expenses (see screenshot below - click to enlarge). 

Otherwise, you must calculate the business portion of your expenses, including those that may also be Itemized Deductions on Schedule A (mortgage interest & property taxes). TurboTax does not allocate based on number of rental days.

An alternative is available when using TurboTax Desktop in Forms Mode (click the Forms icon in the header).

Find Schedule E Wks for the property you need to work on and click the form name to open it in the large window. Scroll down to the Expenses section. Enter the business use percentage in Column B (screenshot #2). This will calculate the business portion of the expenses you have entered.

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3 Replies
jess109
New Member

How to properly allocate De Minimis Safe Harbor expenses on a vacation home that is rented occasionally?

Thank you for your response. Unfortunately, I am still having an issue with this.  The step by step instructions for "any other expenses" on a vacation home rental is different than that of a single family home rental property.  The vacation home has two separate screens to input "any other expenses".  The first only allows you to input one figure described as other expenses (no details permitted here).  The second screen allows the input of separately stated items however it indicates to include ONLY rental expenses applicable to the rental use of your vacation home.  My property profile indicates 50% ownership and 85% business use.  All other currently entered expenses (utilities, taxes, insurance, interest etc.) are calculated accordingly.  I wish to take advantage of the Di Minimis safe harbor election for a refrigerator, washer, dryer and stove.  How can I properly reflect this on my return?  Is the Di Minimis Safe Harbor Election permitted on a vacation home?  If so, kindly provide some additional guidance.
PatriciaV
Level 7

How to properly allocate De Minimis Safe Harbor expenses on a vacation home that is rented occasionally?

Yes, you may take the Safe Harbor Election for the business use of your vacation property. Per the 3rd paragraph in the answer below, you will need to make the calculation yourself. Cost x ownership % x business use % - enter this on the second screen with a custom description. (Or use the instructions for Forms Mode.)
PatriciaV
Level 7

How to properly allocate De Minimis Safe Harbor expenses on a vacation home that is rented occasionally?

You may wish to review your entries for both your Property Profile and under Rental Expenses.

If you own less than 100% of the property, or if you rent out part of your home, TurboTax will offer to make the calculations for you and remind you when you enter expenses (see screenshot below - click to enlarge). 

Otherwise, you must calculate the business portion of your expenses, including those that may also be Itemized Deductions on Schedule A (mortgage interest & property taxes). TurboTax does not allocate based on number of rental days.

An alternative is available when using TurboTax Desktop in Forms Mode (click the Forms icon in the header).

Find Schedule E Wks for the property you need to work on and click the form name to open it in the large window. Scroll down to the Expenses section. Enter the business use percentage in Column B (screenshot #2). This will calculate the business portion of the expenses you have entered.

View solution in original post

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