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nrath72
New Member

Vacation rental expenses question - Does Turbo Tax automatically allocate the utilities expenses for Schedule E?

Hello
We have a second home that we use occasionally and we also rent occasionally in the summer months for short term weekly rentals.  Regarding rental expenses, I understand that for the property taxes and mortgage interest that I enter 100% of the expense under Income under Rental Properties and then turbo tax automatically allocates the expenses between rental expenses (schedule E) and personal expenses (schedule A).

However I am not sure about expenses like utilities and maintenance.  Do I enter 100% of the property utility bill and maintenance expenses under Rental expenses and Turbo tax will automatically allocate between rental and personal use?  (like with property taxes)  Does turbo tax automatically allocate these types of expenses like utilities?  Or do I need to do the math myself and only enter the rental portion of the utilities?

It is not clear to me what expenses Turbo Tax automatically allocates the rental portion.

Please help, Thank you.
4 Replies
Vanessa
Level 3

Vacation rental expenses question - Does Turbo Tax automatically allocate the utilities expenses for Schedule E?

Yes, TurboTax should allocate your utilities, if you enter 100% of the expenses when you walk through and enter the days rented and such. 

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nrath72
New Member

Vacation rental expenses question - Does Turbo Tax automatically allocate the utilities expenses for Schedule E?

thanks for your help
bigrodent
Level 2

Vacation rental expenses question - Does Turbo Tax automatically allocate the utilities expenses for Schedule E?

I am in a similar situation but 90% of my yearly utility bills occur in the few months when renters are there during the summer months.  Simply splitting the expense across personal/rented doesn't seem right.   Is there a way to itemize utility expenses for rented days vs personal?    One example is the electric bill which can be as high as $600 in the hot summer months.(rental time)   In the months we visit it is about $150/month.   

 

Thanks.

jtax
Level 9

Vacation rental expenses question - Does Turbo Tax automatically allocate the utilities expenses for Schedule E?

I know this is an old post but I'm updating it in case some else finds it.

 

It appears that you must allocate vacation rentals that you use by % days rented / % days used. You are not allowed to do otherwise. Seems odd so you should do your own research on draw your own conclusions but it is supported by tax code section 280A(e) and Chapter 5 of IRS Pub 527. See this other discussion https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/schedule-e-vacation-p...

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