Question

1. Jake has a vacation rental house at the beach. During the tax year , he...

1. Jake has a vacation rental house at the beach. During the tax year , he and his immediate family used the house for 12 days for personal vacation. Jake and his son spent two more weekends (4 days) repairing the steps from the property to the beach. The beach house was rented for 100 days. How is the beach house categorized this year? Explain your answer.
2. Can travel expenses to and from rental property be deducted? If so , what are the rules concerning the deductibility of travel and how is the deduction calculated?

Homework Answers

Answer #1

1.) If rental property is used for personal purposes upto 14 days, the property still be called as Rental Property, days spent on repairing of the property is not considered as personal use.

So, total days spent for personal use is 12 days. Hence, the beach house will be categorised as Rental Property this year.

2.) Travel costs from the taxpayer's home to a rental property are deductible if the travel is for business purposes. For example: To conduct repairs or attend a condo association meeting. The standard mileage rate for business travel is used in calculating any travel expenses concerning rental property.

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