I'm trying to prepare a tax
return for a family member that rents out her 'Vacation Home"
and have the following questions:
Facts: Home was rented in 2012 for 35 days
Home was used by family for 88 days
Home was unused the rest of the year -242 days (vacant)
How do I allocate the yearly tax and insurance costs?
Is the factor of 242/365 of the total of both bills NOT part of the any calculation for purposes of determining the Income and Expenses of the yearly rental and personal use on Schedule E. IRS Publication 527 does clearly discuss this.
The taxpayer is NOT itemizing deductions
and instead taking the standard deduction
and does not the need the tax expense deduction. Do you know of any good reference material that shows examples of this concept?
Also, are other expenses that fall outside the rental and use period of time allowed to be part of the Schdule E, or are they deemed to be personal and not deductible in nature?
Note that here was no interest expense paid in the tax year to contend with on the return.