Pro-rated deductible expenses based on days rented vs. direct rental expenses (i.e. supplies) fully deductible

Forum|Forum|3 years ago
March 7, 2023
1 reply
0 views

We have a property that is a short-term airbnb rental half of the year. Turbotax is pro-rating all of our expenses based on days rented out of the year. This makes sense for items like mortgage interest, insurance, repairs, maintenance. However, we spend a lot of money on supplies for the airbnb and they are used 100% for the airbnb, but turbotax is still only giving us a 50% deduction for these expenses. Is there a way around this? A way to get the full deduction within turbotax?

Cynthiad66

Yes, there are certain expenses that can be written of 100%.

The bright side is that you can deduct 100% of direct rental expenses from the short-term rental income, including:

Rental agency fees
Credit checks
Cleaning expenses

Other expenses, like mortgage interest and property taxes, must be split up between personal and business use of your residence.

Here is where you can elect how to enter rental expenses. See screenshot below.

Now, you can just create a workaround that will give you the amounts you want to deduct. I would just double the amounts claimed which would yield your 100% for certain items.

If you need additional assistance with this issue, please come back to the forum.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"