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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 2858
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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I lived in property A Jan-May and AirBnB'ed it days.

Customer Question

I lived in property A Jan-May and AirBnB’ed it for 13 days.
I bought property B in March, and owned it for total of 303 days in 2015.
45/303 days were leased for free for sellers
15/303 days were in remodel.
92/303 days were leased at market price via AirBnB.
Questions:
Do I need to report income from property A?
For property B - Can I assume 70% / 30% split between personal and rental?
How to I capitalize/expense the following for property B
$28K in interest (form 1098)
Property tax = Property tax paid by me during 2015. (Correct?)
$10K remodel for which I have receipt
$10K remodel for which I have check photocopies
$4K furnace - for which I have check photocopy, but no receipt
$500 Dishwasher
$1000 utilities paid by me when property B was rented via AirBnB
$1,200 couch
Submitted: 8 months ago.
Category: Tax
Expert:  Barbara replied 8 months ago.
Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.If rented for less than 15 days, no reporting to the IRS is required.The percentage between personal and rental should be calculated for personal and rental. I.e., days in remodel would not be personal. You may want to recalculate.Mortgage interest and property taxes are expenses and are prorated for rental vs. personal.$10,000 remodel will be depreciated$4,000 furnace will be depreciated$500 dishwasher will be depreciated$1000 utilities paid when property was rented is an expense$1200 couch will be depreciated.Please let me know if you require further information or clarification.Thank you and best regards,Barb
Expert:  Barbara replied 8 months ago.
Just following up with you to see if you have any other questions or concerns. If so, please come back to me here, and I will be happy to assist you.Best regards,Barb
Customer: replied 8 months ago.
the remodel was 20k, 10k with receipts and 10k that i have only checks copies for
Customer: replied 8 months ago.
also why couch to be depreciated rather than expensed at 30% ?
Expert:  Barbara replied 8 months ago.
So $20,000 for the remodel will be depreciated.Couch is depreciated.See the following:https://ttlc.intuit.com/questions/2593041-rental-property-supplies-vs-items-to-depreciatePlease take a moment to rate my answer since that is the only way I receive credit for answering you and alerts Just Answer to compensate me for a portion of the fee you previously paid.
Expert:  Barbara replied 7 months ago.
Just following up with you to see if you have any other questions or concerns. If so, please come back to me here, and I will be happy to assist you.Best regards,Barb

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