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Level 1
November 20, 2023
Question

My client wants to buy an RV, use it two weeks a year and rent it out to others for the remainder of the year. Can he claim the rental as a Schedule C business?

  • November 20, 2023
  • 3 replies
  • 18 views
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3 replies

Camp1040
Level 10
November 20, 2023

This should help.

Personal Property Rentals

IRonMaN
Level 15
November 20, 2023

Can I reserve now for a few days next year?  I am looking to rent it for November 8, 2024 through November 15, 2024.  It would be perfect for deer season next year.  He doesn't mind if we use it to hang up a couple of deer in case we get lucky does he?  Oh, I should ask - how much is he going to charge?

 

 

Slava Ukraini!
Camp1040
Level 10
November 20, 2023

With one RV and hunting customers and partiers, I don't feel the RV will last long enough to qualify as a business!! It may not even last for your November 8th hunting reservation. 

Level 15
November 20, 2023

"Can" he claim it on Schedule C?  It sounds like he WANTS it to be a business.

As Camp pointed out, there is a good chance it would be on Schedule 1 instead of Schedule C.

 

HOWEVER, RV's are dangerous territory.  Assuming the RV has a place to sleep, cooking facilities and a toilet, then using it for personal for 14 days (or at least 10% of the rented days, if greater), would make it a "residence" for your client.  That essentially would mean many deductions would no longer able to be used.  So your client would likely want to use it LESS than 14 days a year, unless he wants to forfeit many of the deductions for renting it.

As of course any many of the allowable deductions (for example, vehicle insurance) will need to be split between personal use and rental use (probably based on days actually rented; not days available for rent).