Question

Renting out RV to produce income

Forum|Forum|6 years ago
February 2, 2020
1 reply
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I purchased an RV last year that I rent out as an income producing property (70%) and personally use the rest of the year (30%). I set up the RV under "rental properties" and my rental property has an asset called "RV" that is depreciating over 5 years. I noticed that my depreciation expense can only be as much as my income produced for 2019. For example: Revenue is $10,000, calculated depreciation is $17,000 but it only let's me take $10,000 so the profit or loss for this property is always 0. Is this a system flaw or am I entering something incorrect.

A

Anonymous

your personal use is too high. therefore deductions are limited to income

T

taxsaverAuthor

Your response cannot be correct because if I set up this asset as 100% business use it is still limiting the depreciation expense to the revenue that was generated. Is it a software issue?