When allocating expenses of a vacation home between personal use and rental use, the amount of depreciation expense allocated to the rental use is based on the number of rental days over rental days plus personal use days.

Question

Quizplus · Accepted Answer

This is correct. The amount of depreciation allocated to rental use is based on the number of rental days over the total number of days (rental days plus personal use days). This is because depreciation can only be taken on the portion of the property that is used for rental purposes, not for personal use.

When Allocating Expenses of a Vacation Home Between Personal Use