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I own a seasonal rental property in Florida and rent it 4 months (Jan-Apr) a year. Am I able to deduct utilities for the entire year? Or just the months rented? Thanks!

I am military and rarely have time to visit the property as I am living overseas. The personal time spent in Florida between my family and I is less than 14 days a year. Any guidance would be a great help! Thank you!
1 Best answer

Accepted Solutions
Coleen3
Intuit Alumni

I own a seasonal rental property in Florida and rent it 4 months (Jan-Apr) a year. Am I able to deduct utilities for the entire year? Or just the months rented? Thanks!

You fall into a gray area if you are not attempting to rent apart from the season.

 The IRS states below that if you hold property for rent...The question is: is it really available for rent. I am assuming you do not attempt to rent off-season and that ideally the home is available for your own personal use should you have the opportunity to use it. The fact that you only have the opportunity to use it less than 14 days still leans to it being exclusively rental property. The vacant while listed for sale below, hints that if property were not available for rent, you could not take the expense. Bottom line is, there is nothing that directly says you can't the full year expenses.

If you rent a dwelling unit to others that you also use as a residence, limitations may apply to the rental expenses you can deduct. You're considered to use a dwelling unit as a residence if you use it for personal purposes during the tax year for more than the greater of:

  1. 14 days, or
  2. 10% of the total days you rent it to others at a fair rental price.

If there is no personal use (less than 14 days) then it is rental property.

 Vacant rental property. If you hold property for rental purposes, you may be able to deduct your ordinary and necessary expenses (including depreciation) for managing, conserving, or maintaining the property while the property is vacant. However, you cannot deduct any loss of rental income for the period the property is vacant.

Vacant while listed for saleIf you sell property you held for rental purposes, you can deduct the ordinary and necessary expenses for managing, conserving, or maintaining the property until it is sold. If the property is not held out and available for rent while listed for sale, the expenses are not deductible rental expenses.

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1 Reply
Coleen3
Intuit Alumni

I own a seasonal rental property in Florida and rent it 4 months (Jan-Apr) a year. Am I able to deduct utilities for the entire year? Or just the months rented? Thanks!

You fall into a gray area if you are not attempting to rent apart from the season.

 The IRS states below that if you hold property for rent...The question is: is it really available for rent. I am assuming you do not attempt to rent off-season and that ideally the home is available for your own personal use should you have the opportunity to use it. The fact that you only have the opportunity to use it less than 14 days still leans to it being exclusively rental property. The vacant while listed for sale below, hints that if property were not available for rent, you could not take the expense. Bottom line is, there is nothing that directly says you can't the full year expenses.

If you rent a dwelling unit to others that you also use as a residence, limitations may apply to the rental expenses you can deduct. You're considered to use a dwelling unit as a residence if you use it for personal purposes during the tax year for more than the greater of:

  1. 14 days, or
  2. 10% of the total days you rent it to others at a fair rental price.

If there is no personal use (less than 14 days) then it is rental property.

 Vacant rental property. If you hold property for rental purposes, you may be able to deduct your ordinary and necessary expenses (including depreciation) for managing, conserving, or maintaining the property while the property is vacant. However, you cannot deduct any loss of rental income for the period the property is vacant.

Vacant while listed for saleIf you sell property you held for rental purposes, you can deduct the ordinary and necessary expenses for managing, conserving, or maintaining the property until it is sold. If the property is not held out and available for rent while listed for sale, the expenses are not deductible rental expenses.

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