Depreciation of real estate - partial use

[cred65]

I have a high-roller that purchased a house in Hilton Head for $649K (which included club memership of $65K and $27K of F & F).

The client received a 1099M for rental income of $12K, which was for 5 weeks rental that the agent collected. The client used the property for personal use for 7 weeks in 2007. This leaves 40 weeks that the home is vacant but available for rental in 2007.

Question is what percentage would be allowable for depreciation of the building and fixtures for 2007. Looking beyond 2007 the amount of weeks rented will fluctuate but that can not be projected.

TIA

[kcjenkins]

Use the Vacation rental tab on the bottom of the E, and it will walk you through the calculations.

[jainen]

>>what percentage would be allowable for depreciation<<

Since personal use exceeds 14 days or 10% of rental use, deductible expenses cannot exceed income. After taxes, mortgage, and maintenance, you probably don't have room for ANY depreciation. But research the Bolton decision for an alternative allocation that moves more of the taxes and interest onto Schedule A.