One Year Rental

[Yardley CPA]

Client owns a beach home which they decided to rent for a total of 5 weeks during the summer of 2023.  They occupy the home periodically outside of those five weeks.  Personal use and Rental Use will be calculated appropriately. 

If the client decides to no longer rent the home beyond the 2023 season, they would simply indicate that its entirely being used for personal use moving forward, correct?  Would they still be required to complete Schedule E each year, showing no expenses and no income, since it's being used entirely for personal reasons...I wouldn't think they need to but wanted to seek feedback.  Also, depreciation would no longer be calculated, correct?  Any feedback is appreciated. 

[kathyc2]

If they personally used the property for the greater of 14 days or 10% of days rented, expenses are limited.  See Pub 527.

[BrewOne]

no need for Schedule E, but taxpayer should keep a copy of the depreciation schedule generated for the time it was a rental property.  Will be a factor when the property is sold (but not if inherited).

[Abby Normal]

To track the depreciation taken in ATX, just leave the asset in fixed assets, but make it unassigned. Might need to make business use % zero.

[jklcpa]

If you delete the Sch E input and keep only the fixed asset as unassigned, be sure to also keep track of any carryover amount of operating expenses that were disallowed due to personal use/income limitation that would be carrying forward.

[Abby Normal]

I think I'd just leave the Sch E if there are operating expense carryovers or passive loss carryovers. There's no downside to leaving the E.