Vacation Home that is rented out

[Estrella]

We have a vacation home that is rented out weekly.  It has been classified as a vacation home on our tax returns.  We use a rental agency.  We have never shown a profit.  It was damaged in a hurricane and I am trying to complete the casualty report.  Should it be classified as personal property or income -producing.

[Anonymous_]

Casualty report for what purpose? Insurance? 

The property appears to be "income-producing" since it generates revenue from rental use, notwithstanding the fact that you have never shown a net profit.

[Estrella]

Casualty Form for tax return ( Form 4684).  It is considered a vacation home ( personal use and short-term rentals) when we file our annual tax return.

[Anonymous_]

@Estrella 

If property is used partly in a trade or business and partly for personal purposes, such as a personal home with a rental unit, figure the personal part in Section A and the business part in Section B.

See https://www.irs.gov/instructions/i4684#idm140435682836176

[Estrella]

The property is not a personal home with a rental unit..  The "whole" property is rented on a short term basis and is sometimes used by the owner when it is not being rented.

[Anonymous_ · Accepted solution]

Correct, but it appears that the property is used partly for personal purposes (i.e., as a vacation home at various times when it is not rented).

[Henk]

So how do I report this in TT?  I am in the same situation.  I don't see your anwer.

[Henk]

Just tell me how to enter the vacation rental income.  My agent sent me a 1099K.  No idea where I enter that.

[Henk]

I don't see a "solution in the original post."   Please send it to me.  (I  am in the same situation.  Received a 1099-K from the agent I use to find me renters.  Renters pay me through him. 

[ColeenD3]

There is no solution because there was never an agreement if the property was actually business property. The IRS does not mention vacation homes in the IRS link above, only properties such as a duplex.

Which Sections To Complete

Use Section A to figure casualty or theft gains and losses for property that isn't used in a trade or business or for income-producing purposes. Also use Section A to figure casualty or theft losses and gains related to the portion of your home used for business if you used the simplified method to determine your deductible expenses for business use of your home.

Use Section B to figure casualty or theft gains and losses for property that is used in a trade or business or for income-producing purposes.

If property is used partly in a trade or business and partly for personal purposes, such as a personal home with a rental unit, figure the personal part in Section A and the business part in Section B.

You can report the casualty loss on your tax return by following these steps:

1. Click on Federal > Deductions & Credits.
2. In the Other Deductions and Credits section, click on the Start/Revisit box next to Disasters, theft, and other property loss or damage.
3. You will see the screen, Did you have anything damaged or stolen during a recent federal disaster?  Click the Yes box, if applicable..
4. Any allowable loss will appear on Schedule 1, line 14.