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Rental and personal use

Technical topics regarding tax preparation.
#1
Andrew  
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From schedule E instructions: Whether or not you can deduct expenses for the unit depends on whether or not you used the unit as a home in 2018. You used the unit as a home if your personal use of the unit was more than the greater of: 14 days
or 10% of the total days it was rented to others at a fair rental price.

Client put condo up for rent in August, spent 4 days at the rental for a vacation but it was only rented for 3 days at fair rental value from 2/29/18 through end of year.
Client did not use it for more than 14 days. 10% of rental days is 72 hours = 7.2 hours. Because client used home for more than 10% of the total rental days, he cannot deduct expenses but also does not have to claim income. I think I got it right but brain is "overtaxed".
 

#2
Andrew  
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168
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Location:
CA
Okay, does that mean client can't even deduct mortgage interest and property taxes paid?
 

#3
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U.S. Capitol
There was no February 29th in 2018.
 

#4
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Near the fridge.
What was this place used for from the beginning of the year until August?

Why are you saying your client doesn't have to claim the rental income? Did you read this paragraph in the Schedule E instructions?
If you did use the unit as a home and rented the unit out for fewer than 15 days in 2018, do not report the rental in-come and do not deduct any rental expenses. If you itemize deductions on Schedule A, you can deduct allowable interest, taxes, and casualty losses.


Is the February 29 thing just a typo?
 

#5
dave829  
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California
Have you looked at 280A(g)?
 


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