Dave T Posted March 7, 2022 Report Share Posted March 7, 2022 Long time client moved out of state in 2020, bought a house and just texted me to tell me they are using that house as an Airbnb. I have had clients with rental property before but never something like this. How is depreciation calculated since it is their personal residence as well as rented? I know there are other expenses a well but not sure about this component. Thank you Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 8, 2022 Report Share Posted March 8, 2022 Depreciation uses 39 year. Direct expenses go 100% against the rental income received. Utilities are prorated based on the portion rented vs the portion used by the owners. Use the same ratio for taxes, house insurance, mortgage, etc. Don't forget to deduct from Schedule E a different portion of personal cell phone if used to receive calls or to check reservations from clients and your payment. I hope they don't cook for their clients because it could become ugly. 1 Quote Link to comment Share on other sites More sharing options...
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