Rental cabin also used for personal use.

[Kern County Camper]

We own a cabin that we rent both as a seasonal rental and through airbnb. In 2019, it was rented 152 days, we had family/friends stay for 13 days, and the rest of the time it was vacant. When we enter the data as a rental only with zero days personal use in Turbo Tax, we see that our Federal and State tax is a certain number. When we put in the 13 days of personal use, we see that our Federal and State tax goes up an additional $280. I thought we could use our rental cabin for 14 days of personal use or 10% of the days rented, whichever is larger, with no change in tax status. I just googled the question and that's what the IRS publication says. Can anyone help me understand why our tax burden goes up in this case when we don't apparently meet the threshold? Thank you for considering this request.

[ColeenD3]

I duplicated your entries and got the same result.  Please try this LINK to get to an agent to help you.

[Carl]

The problem is that the property is classified as residential rental real estate for the entire year - all 365 days of it. Yet you say you only rented it 152 of those days. Change your days rented to 352 and personal use days to 13 (totals up to 365) and you should be fine.

The "days rented" count starts on the first day the property is "available" for rent. Generally, that's the day you put the FOR RENT sign in the front yard. Doesn't matter if it takes you 3 months to actually get a renter in there. 

[Kern County Camper]

Hi Coleen,

Thank you for your reply. I am having trouble with the LINK in the sentence, "Please try this LINK...

My browser is saying "Can't open the page "https://supintuit.com/contact/port.turbotax" because cannot find the server "supintuit.com"

We do have some followup questions that we would like to ask the agent. Would you mind rechecking that link please?

Thanks, 

Steve

[Kern County Camper]

Hi Carl,

Thank you for the very clear explanation. We have the cabin in the airbnb program but of course it is not always rented, especially during the weekdays. Your explanation that the days it is available for rental, not just rented, that counts is very very helpful.

Warm regards,

Cathy