house rental

[liberty]

A new client who every other year rent his house for 4 months. I plan to deduct 4 month worth of RE tax and utility for the 4 months. Druing rental period, washer broke down, he had to put a new washer, how do you decuct the washer?

[Dude]

IF it is under $2500 4/12 can be expensed or capitalized.

[Rapid Robert]

Druing rental period, washer broke down, he had to put a new washer, how do you decuct the washer?

What if it had broke down during the non-rental period?

This rental should be reported under the rules for vacation rentals, as it is part personal use. Not sure how de minimis safe harbor would apply here, if it does at all, especially since this property is only converted to partial rental use every OTHER year. I would charge a lot for handling the reporting of the repeated conversions back and forth between personal and rental use.

Upon adding the new washer, maybe one should also dispose of the old washer out of basis.

[Dude]

What if it had broke down during the non-rental period?

This rental should be reported under the rules for vacation rentals, as it is part personal use. Not sure how de minimis safe harbor would apply here, if it does at all, especially since this property is only converted to partial rental use every OTHER year. I would charge a lot for handling the reporting of the repeated conversions back and forth between personal and rental use.

Upon adding the new washer, maybe one should also dispose of the old washer out of basis.

De minimis applies https://www.irs.gov/publications/p52...link1000219015

[Dude]

As Rapid Robert noted, this scenario would seem to fit a Sch E situation of a vacation rental (line 2 of Sch E).
The allocation of Sch A / Sch E costs can be time-consuming, but most tax software can handle it.
Not sure how the on/off yearly situation fits in, especially to include off/on yearly depreciation issues.
I think it's a bit shaky to say the "broke" appliance is 100% rental and 0% personal, if that's what I think is being implied.
It's doable, but charge accordingly!!

If washer is under $2500 it can be expensed or capitalized 4/12 in the year you do the schedule E. Same with all other expenses. 8/12 of Mort int and taxes go on schedule A that year. The year there is no rental then all mort int and re taxes go on schedule A. No biggie

[Dude]

I think you're missing my point, Dude.
Hopefully everyone on this board already knows HOW to treat a valid business expense such as a new appliance.
But here we have a quasi-rental property that is apparently rented for only 4 months out of each 24-month period.
I guess it would be for the convenience of the landlord to make certain property upgrades only during those 4 months? ? ? Flip side is the landlord should avoid all repairs/etc during the time of "personal" use?

and I think you are over thinking again. The original question said the washer broke down during the rental period.