If the property is “used as a home,” your rental expense deduction is limited. This means your deduction for rental expenses can’t be more than the rent you received. For more about these rules, see Publication 527, Residential Rental Property (Including Rental of Vacation Homes).
Vacation rental are more complex reporting and if there is just 1 day of personal use, expenses are required to be allocated between rental/personal.
If the taxpayer or family members spent more than 14 days at the property,losses generally are not allowed under the rules in IRC § 280A. The losses do not enter into the passive activity computation and should not be entered on Form 8582.
If a taxpayer or family members use a vacation property for more than 14 days or 10 percent of the property’s rental time, the personal use limitations of IRC § 280A apply and IRC § 469 is no longer applicable. The IRC § 280A severely limits losses. See IRC § 469(j)(10)
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