Where in TT do I report income and expense for a US Virgin Islands vacation rental property (50% rental / 50% personal use) with an EIN?

[rws38]

Do I enter using rental property section or business section?

[AnnetteB · Accepted solution]

In general, Schedule E is used to report rental income and expenses.  This would be the rental property section of TurboTax instead of the business section.

The only time that a Schedule C would be used instead is when significant personal services are provided to the guests as part of their stay.  Something like a hotel or a bed and breakfast would fall under this type of business. 

[rws38]

I only rented 1 day in 2018 with significant start-up expenses. TT does not allow Schedule E use in this case. So, where do I enter the vacation rental info?

[AnnetteB]

If you use the property more than 14 days or 10% of the number of days it was rented, then you do not have a rental property.  All the expenses you incur are personal expenses and are not deductible if this is the case.  

If some of your start-up expenses were improvements to the property, then those can be added to the basis when you do have rental income and put the property into service as a rental.  The same is true for furnishings.  Those can be depreciated as assets starting on the date you put the property into service.