Question
Vacation Home Rental - Depreciation
In situations where a vacation home is rented more than 14 days and used more than 14 days or 10% by the owner, Lacerte calculates depreciation and indirect expenses based on the ratio of personal days to total days used (rented + personal).
However, if the vacation home is used less than 14 days, Lacerte does allocate indirect expenses, but does not decrease depreciation for the personal use portion. Is Lacerte doing this correctly?
The IRS publications suggest that all expenses should be allocated between personal and rental, whether it's used more or less than 14 days for personal use.
(I'm ignoring interest/taxes and the Bolton decision for this question)
