personal use of vacation rental and depreciation

[gll]

I used the vacation rental 12 days and it was rented for 81 days.  I noted that TT takes the full amount of depreciation based on the tax tables.  I was expecting it to take 97%.  Is it taking 100% of the tax table amounts because I used less than 14 days personal? 

[GeorgeM777]

Yes, because you used the property for less than the greater of 14 days or 10% of the days rented (8.1 days), you did not use the property as a personal residence, and thus, are eligible to receive the full amount of depreciation.  TurboTax should allocate the correct percentage of depreciation based on the number of days rented at a fair market rent. 

@gll

[tagteam]

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@gll wrote:

Is it taking 100% of the tax table amounts because I used less than 14 days personal? 

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Per Section 280A, using your rental property for the greater of 14 days or 10% of the number of the number of days the property is rented at fair rental value limits the losses you can deduct (i.e., your loss cannot exceed your income from the property).

Per Section 280A(e), expenses are still prorated based upon the number of days of rental and personal use.

Are your expenses being prorated?

See https://www.irs.gov/taxtopics/tc415

[gll]

Thank you.  So when I go to the Asset section of TT, and for each asset it asks "Have you used this item 100% for this business since you acquired it? " should I answer "Yes, I've always used this item 100% for this business, even if technically, it is only 97% when I calculate the 12 days of personal usage over total days used?

Now if I had used it more than 14 days, would I answer this question "No, I have not always used this item 100% of the time for this business?  And then put in the % I calculate?

Thank you.

[gll]

It does not appear they were prorated as the amounts matched the tax table numbers. I had calculated depreciation for all my assets using tax tables and conventions. Then I took 97% of each table number. I expected the TT calculations to match my 97% number. However TT used 100% of the table number in every case. 

[gll]

Tag Team?  Any thoughts?

[tagteam]

Yes. The Assets/Depreciation section does not, I believe, allocate the depreciation deduction based upon rental days and personal use days as does the Expenses section. As a result, I think you have to do the math yourself for any assets subject to depreciation.

[gll]

I can do that.  Thank you.