Technical topics regarding tax preparation.
RV and Tesla Rental
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12-Feb-2019 5:11pm

A client started to rent out his Telsa and RV through a website, However, no many days have been rented out ( about 90 days out of 365 days)

so my question: shall I depreciate the cost? and how I expense those expenses - e.g all insurance, electric etc ? just full year or prorated based on the days?
first time to do these kind rentals, thanks!

12-Feb-2019 6:05pm

Does client use them personally when they are not rented?

12-Feb-2019 6:09pm

Very tempting to call it casual rental on 1040 Schedule 1 line 21 maybe with prorata part of insurance on line 36 for this first year and move it to Schedule C only if rental use increases significantly in a future year.

12-Feb-2019 7:09pm

I guess so, Sjrcpa, but he owns other two cars. Tenletters, thanks, I think I will do that.

12-Feb-2019 7:28pm

Actually, there was not much income in 2018 because the rental started in Sep. the describe above partly for 2019 too

13-Feb-2019 5:56pm

I wonder if Elon pays Nikola's heirs a royalty for using his [their] name. Did the OP avoid the royalty?

13-Feb-2019 8:21pm

Nik (the nickname I have always used for him) never married, had no close relatives, and never protected the name in a legal sense. Ergo, no royalties.

John DeLorean probably did protect the name. The car might be coming back. https://www.delorean.com. Back to now, that is, not the future.

13-Feb-2019 8:29pm

Is Diplodok close enough to Nilodop, such that I can sue over infringement? Probably not, but I am a confirmed nuisance, so I might be able to squeeze out a nuisance settlement.

13-Feb-2019 10:04pm

Diplodok is the nickname for my daughter's favorite dinosaur, the diplodocus. I maintain independent creation : )

14-Feb-2019 10:48am

I would go about it in a days used fashion for the RV.

Perhaps standard mileage rate for the Tesla? Or if you go the actual method, you might get better deduction. Idk, since this is probably a hobby.
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