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lgm929
New Member

Is there a way to deduct full expenses for a rental property when it was used for part of the year as a primary residence? Currently it's taking a small percentage only.

The house was rented for 2 months out of the year and several repairs were made specifically because of the rental but the way turbo tax does the percent calculation it is only giving us credit for a small portion of those costs.
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3 Replies

Is there a way to deduct full expenses for a rental property when it was used for part of the year as a primary residence? Currently it's taking a small percentage only.

If the repairs were made during the period of rental use, the cost can be deducted in full.

 

This may require a manual entry in TurboTax.

Is there a way to deduct full expenses for a rental property when it was used for part of the year as a primary residence? Currently it's taking a small percentage only.

@lgm929 see page 15 / middle column "property changed to rental use". 

 

also, bottom of page 16. "not rented for profit", if that applies to this situation.  if not for profit, then expenses can not exceed rental income, so deducting "full" expenses may not be possible, 

 

https://www.irs.gov/pub/irs-pdf/p527.pdf

 

 

Is there a way to deduct full expenses for a rental property when it was used for part of the year as a primary residence? Currently it's taking a small percentage only.


@NCperson wrote:

@lgm929 see page 15 / middle column "property changed to rental use". 


The information in that particular section of the publication regarding allocations does not apply to expenses that are costs incurred solely as a result of rental use.

 

For example, management fees, advertising costs, and commissions related to rental use would be fully deductible and not subject to being prorated for personal use. Similarly, repairs made during rental use (as a result of that use) would also be fully deductible.

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