Kea Posted March 12, 2008 Report Share Posted March 12, 2008 New client called today. She wants someone to help with her taxes because Turbo Tax is asking too many questions about her RV rental. She rents out her pop-up travel trailer when she is not using it. The rental income goes on line 21, and I can deduct expenses on line 36. But in this case, I'm not sure what kind of expenses would qualify. Purchase price or interest? She uses it personally. Depreciation doesn't seem to be appropriate since she is not in the business of renting her pop-up. Maybe just some upkeep to make it presentable to potential renters? Repairs if a renter damages it? I just want to have a list of ideas to ask her about. Thanks. Quote Link to comment Share on other sites More sharing options...
Alpha Posted March 12, 2008 Report Share Posted March 12, 2008 I don't know but where are you located. I am looking for a RV to rent for the weekend of April 17th Quote Link to comment Share on other sites More sharing options...
RoyDaleOne Posted March 12, 2008 Report Share Posted March 12, 2008 Sounds like a vacation home rental to me. Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 12, 2008 Report Share Posted March 12, 2008 Sounds like a vacation home rental to me. Sounds like schedule E to me. Quote Link to comment Share on other sites More sharing options...
RoyDaleOne Posted March 12, 2008 Report Share Posted March 12, 2008 "She rents out her pop-up travel trailer when she is not using it." Still sounds like a vacation home to me which goes on Schedule E. On the other hand because the rentals are most probably of short duration it could be like a hotel and go on Schedule C. How much services are provided? Quote Link to comment Share on other sites More sharing options...
Kea Posted March 12, 2008 Author Report Share Posted March 12, 2008 I've only just had an initial conversation to set up an appointment for Friday, so I don't have the details yet. It's not for profit (I would seriously doubt), so I wasn't going to use a Sch C. I considered the Sch E, but it isn't located at one fixed address. You take the trailer with you anywhere you want to go camping. While it may meet the conditions for deducting as a 2nd home mortgage, it may not if it doesn't have a commode. Some pop-ups are small enough not to. I don't know about hers yet. I'm just not sure it quite fits the definition on a rental house. Maybe? And Alpha, she's just north of Austin, TX. I'm with you, but I already have my own RV and it's scheduled to leave the area 4/19. Thanks. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted March 12, 2008 Report Share Posted March 12, 2008 Well, it seems to me the question you need to ask FIRST is how often does she rent it? If we are talking about two or three times a year, then I'd go with it on Line 21. But if it is many times a year, then I think you have to consider it a business, frankly. I do not think anyone can have it be a non-business if it is done on an on-going basis, or if there is advertising of it's availability, etc. So I'd just ask a lot of questions, before I offered any opinion on where it would be reported. And remember the 14 day rule. If it's less than 14 days, total, does not have to be reported at all, but no expenses either. Quote Link to comment Share on other sites More sharing options...
MAMalody Posted March 12, 2008 Report Share Posted March 12, 2008 Well, it seems to me the question you need to ask FIRST is how often does she rent it? If we are talking about two or three times a year, then I'd go with it on Line 21. But if it is many times a year, then I think you have to consider it a business, frankly. I do not think anyone can have it be a non-business if it is done on an on-going basis, or if there is advertising of it's availability, etc. So I'd just ask a lot of questions, before I offered any opinion on where it would be reported. And remember the 14 day rule. If it's less than 14 days, total, does not have to be reported at all, but no expenses either. I'm with KC on this one. In fact, she said it better than I could. Hmmm. Quote Link to comment Share on other sites More sharing options...
Kea Posted March 12, 2008 Author Report Share Posted March 12, 2008 She does offer it regularly because she mentioned some kind of association or co-op that she rents it through. Schedule C could make sense if there is enough activity. I'm still not sure about Schedule E because I don't think of an RV as "real estate" - could be wrong. The main reason I was thinking about going with Line 21, was not because not as a "hobby" but as "rental of personal property" and take the expenses on 36. I will definitely check on the 14 day issue. Thanks everyone! Quote Link to comment Share on other sites More sharing options...
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