Rental Property Schedule E Deducting for Personal Use

[MedicaidQs]

For tax year 2024, I hired a management company to rent my beach condo and made it available for rent  all year, 365 days. The management company only found renters for 180 days during the year. It was also utilized for personal use for 32 days, with family members using it, but only paying for the cleaning fee. The condo was completely vacant for 153 days. This leads to a calculation of 17% personal use (32/180) and 83% rentals for the year as I understand it. Am I correct in assuming that 17% will then be deducted from each expense entry that I am reporting on Schedule E due to the personal use being greater than 10% of the days it was rented out at fair market rates? Will 180 be placed in box 2a to indicate the “Fair Rental Days”?

Thanks in advance for your assist with this!!

[MaryK4]

Yes, the deductions will be divided for the rental with your personal use percentage.  

If you use the dwelling unit for both rental and personal purposes, you generally must divide your total expenses between the rental use and the personal use based on the number of days used for each purpose. You won't be able to deduct your rental expense in excess of the gross rental income limitation (your gross rental income less the rental portion of mortgage interest, real estate taxes, casualty losses, and rental expenses like realtors' fees and advertising costs). However, you may be able to carry forward some of these rental expenses to the next year, subject to the gross rental income limitation for that year. Source: Topic no. 415, Renting residential and vacation property

[MedicaidQs]

Thanks- a couple of follow-ups- So are you saying that if the total income for the rental is $30,000, for example, and the property taxes are $5000, your total expenses listed on Schedule E cannot be more than $25000?

Also, I should put 180 for Schedule E Lines 2a?

[MaryK4]

Correct- your deductions are limited to your income- but they do carryforward so you may be able to take advantage of them in future years.  With the vacation property, your deductions are limited to "operating expenses".  If you look at your Schedule E Worksheet in TurboTax (I did a partial screen shot for your reference I just threw some random number in but you can see the expenses in Col. D that are deductible).  @MedicaidQs 

[MedicaidQs]

I have an additional question in regard to property taxes. I noted that my rental property taxes are listed on both Schedule E expenses, Line 16, and on Schedule A, Line 5b. I only entered property taxes for the rental when I completed the expense entries for Schedule E. I am wondering if this is occurring because I had both rental (83%) and personal use (17%), which of course was deducted from all of my expenses. As an example, $10,000 was the actual property tax expense paid in 2024, but $8500 is listed as an expense on Schedule E line 16, due to the personal vs renter use. There is also $1500 listed on Schedule A, Line 5b. When I went in to try to determine why this amount is showing on Schedule A line 5b, TurboTax stated, "Don't enter personal taxes from your rental, the $1,500.00 is already taken care of." I just want to be sure that I have a clear understanding of why there is an additional entry on Schedule A line 5b related to property/personal taxes. 

[AnnetteB6]

Yes, the personal portion of the property tax is automatically being claimed on Schedule A, with the remaining portion being claimed on Schedule E as a rental expense.

@MedicaidQs