What’s your opinion of the situation:
We have 1 primary residence, and we are renting out the house 30 days this year, using it the rest of the year as our primary residence. During these 30 days, we are staying in a hotel nearby our house. We rent our house for $1,000 a night on airbnb and pay $200/night for a hotel. This is strictly being done to produce income, we aren’t on “vacation” during the rental period. So my question is, can I deduct the $200 nightly we paying for a hotel from my $1,000 night rental income, essentially paying tax on a rental income of $800 nightly vs $1000?
For the rest of our household expense, I understand that I add them up and prorate them for the number of nights. For example, it costs us $50,000 per year in expenses to own and operate this house, and I plan to take 30/365 x $50,000 in expenses to offset our rental income. I’ve also read up on the depreciation and the cost basis, etc. But I’m just not sure about the expenses we are incurring in hotels while we rent out our house and need a place to stay, and whether that is valid to include.
Thanks for any help!