Solved: I have a lake house that I marketed on VRBO for all of last year with the exception of 3 weeks. It is still considered a second home vs. investment property?
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I have a lake house that I marketed on VRBO for all of last year with the exception of 3 weeks. It is still considered a second home vs. investment property?

Can I put the mortgage and taxes on schedule A vs. schedule C?

Can I use my 21 days vs. 344 days for prorating the other expenses (utilities, etc).  Or do I need to us the # of actually nights rented?

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Level 11

I have a lake house that I marketed on VRBO for all of last year with the exception of 3 weeks. It is still considered a second home vs. investment property?

Since you rented your vacation home most of the year, claim rental income and expenses in the Rental section, reported on Schedule E.

You can still claim the % of Mortgage Interest or Property Tax for your personal use on Schedule A.  Enter these first in the Rental section and TurboTax will calculate your personal portion and move it to Itemized Deductions for you. 

TurboTax will guide you when you set up your rental property in the Property Profile and Sale of Property/Depreciation areas in the Rental section. 

If you offer substantial 'hotel-like' services, you could also report rental income/expenses on Schedule C, as a Business. You will be subject to Self-Employment Tax in this case, however.

Here's more info:

https://ttlc.intuit.com/replies/5652708

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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1 Reply
Level 11

I have a lake house that I marketed on VRBO for all of last year with the exception of 3 weeks. It is still considered a second home vs. investment property?

Since you rented your vacation home most of the year, claim rental income and expenses in the Rental section, reported on Schedule E.

You can still claim the % of Mortgage Interest or Property Tax for your personal use on Schedule A.  Enter these first in the Rental section and TurboTax will calculate your personal portion and move it to Itemized Deductions for you. 

TurboTax will guide you when you set up your rental property in the Property Profile and Sale of Property/Depreciation areas in the Rental section. 

If you offer substantial 'hotel-like' services, you could also report rental income/expenses on Schedule C, as a Business. You will be subject to Self-Employment Tax in this case, however.

Here's more info:

https://ttlc.intuit.com/replies/5652708

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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