Solved: In TT, do I report a personal use vacation home / rental condo expense activity on Sch C or Sch D?
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In TT, do I report a personal use vacation home / rental condo expense activity on Sch C or Sch D?

This condo is in the US Virgin Islands and requires a local business license to rent under an 'Apartment House D; less than 4-units' rule. Other particulars: 1)  I incurred startup expenses (new kitchen, new bath, new A/C install, travel and misc. repairs) to get condo 'rent-ready' Jan '18-Oct '18, 2) my business license was established Nov '18, 3) My personal use was 10 days, and 4) the first guest reservation started Dec 31.

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In TT, do I report a personal use vacation home / rental condo expense activity on Sch C or Sch D?

Unless you provide significant personal services to the tenants who rent your condo (more than just cleaning between tenants), then you would use Schedule E to report your Rental Income and Expenses, not Schedule C or D.

Your improvements to the property will be added to the cost basis for depreciation once the property is considered available to rent.

The cost of your business license will be a rental expense.

For 2018, you personal use will only be considered if it occurred after the date that the property became advertised and available for rent.  That is the date that the property was placed into service.

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New Member

In TT, do I report a personal use vacation home / rental condo expense activity on Sch C or Sch D?

Unless you provide significant personal services to the tenants who rent your condo (more than just cleaning between tenants), then you would use Schedule E to report your Rental Income and Expenses, not Schedule C or D.

Your improvements to the property will be added to the cost basis for depreciation once the property is considered available to rent.

The cost of your business license will be a rental expense.

For 2018, you personal use will only be considered if it occurred after the date that the property became advertised and available for rent.  That is the date that the property was placed into service.

View solution in original post

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