Why is Turbotax pro-rating my expenses by the ratio of personal use to total use. I thought that if my personal use was less than 10% of the total days rented or less than 14 days (whichever is greater), the expenses would not be pro-rated. I had 7 personal use days and 168 rental days. My expenses are being prorated at 96%. Is this correct? If not, how do I fix? Thanks
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Based on the information that you provided the TurboTax program, that calculation of 96% prorated deductible rental expenses is correct.
"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."
Thus: (7 personal days / 168 rental days) = 0.04166667 or 4%
100% - 4% = 96% of expenses were attributed to rental days
IRS Topic no. 415, Renting residential and vacation property (Dividing expenses between rental and personal use)
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