turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Ask the Experts All About the W-4! >> Event happening TODAY!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

FP1- IL
New Member

Rental property is rented 60% of the year, used personally about 10%. My income & expenses resul in anallocated loss. Depreciation is calculated but not decucted Why?

 
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions
VictoriaD75
Expert Alumni

Rental property is rented 60% of the year, used personally about 10%. My income & expenses resul in anallocated loss. Depreciation is calculated but not decucted Why?

If the residence is rented for 15 days or more and is used for personal purposes for more than 14 days or 10 percent of the days rented, whichever is greater, allocable rental expenses are allowed only to the extent of rental income. Allocable rental expenses are deducted in three separate steps:

  1. The interest and taxes are deducted
  2. Utilities and maintenance expenses are deducted
  3. Depreciation expense is deducted

For utilities, maintenance, and depreciation expenses to be deductible, there must be positive income following the deduction of items in the preceding steps. In addition, the expenses, other than interest and taxes, are only deductible to the extent of that positive income.

 

Expenses are allocated between the rental and personal days before the limits are applied. The IRS requires that the allocation be on the basis of the total days of rental use or personal use divided by the total days of use.

**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

1 Reply
VictoriaD75
Expert Alumni

Rental property is rented 60% of the year, used personally about 10%. My income & expenses resul in anallocated loss. Depreciation is calculated but not decucted Why?

If the residence is rented for 15 days or more and is used for personal purposes for more than 14 days or 10 percent of the days rented, whichever is greater, allocable rental expenses are allowed only to the extent of rental income. Allocable rental expenses are deducted in three separate steps:

  1. The interest and taxes are deducted
  2. Utilities and maintenance expenses are deducted
  3. Depreciation expense is deducted

For utilities, maintenance, and depreciation expenses to be deductible, there must be positive income following the deduction of items in the preceding steps. In addition, the expenses, other than interest and taxes, are only deductible to the extent of that positive income.

 

Expenses are allocated between the rental and personal days before the limits are applied. The IRS requires that the allocation be on the basis of the total days of rental use or personal use divided by the total days of use.

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

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies