Short term rental depreciation

Forum|Forum|3 years ago
March 31, 2023
1 reply
0 views

I have a short term rental, that I do not use as a home, stay in less than 14 days or 105 of rented days. I am not a real estate professional, but materially participated and have an average rental of less than 7 days, so this is a trade or business activity, not a "rental activity" according to IRS pub 925.

Depreciation should be over 30 years, but when using TT, I seem to only have the option to enter depreciation as a nonresidential business property with depreciation over 39 years....

Where/how do I enter the correct 30 year (ADS) depreciation schedule?

Where / how do I

SuperaledhAuthor

Sorry the first sentence should read:

I have a short term rental, that I do not use as a home, stay in less than 14 days or 10% of rented days.

ThomasM125

You would have to set up the rental as a business as opposed to a rental activity. So, it will show on schedule C rather than schedule E. When you add the asset, you will choose the Other asset type option. Later, you will see an option to choose the asset class, one option of which will be 31.5 years.

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

SuperaledhAuthor

Thanks Thomas, I will look at this option to see if I can choose the correct depreciation schedule of 30 years, mid month and ADP according to pub 527.