Can I deduct my camper and campsite fees as a business expense for my rental property?

This is actually a really interesting tax situation! Generally speaking, you can deduct "ordinary and necessary" expenses for running your rental business, but there are some important distinctions here. The camper and campsite fees would likely fall under what the IRS considers "mixed-use" property - items used for both personal and business purposes. Since you're living in the camper during the rental season, there's definitely a personal use component. Here's how I'd approach it: You can potentially deduct a portion of these expenses based on business use percentage. Since you're using the camper exclusively to facilitate your rental business for 6 months, you might be able to deduct 50% of the costs. For the camper itself, that would be depreciation rather than an immediate write-off. You'll want to keep extremely detailed records showing how the camper is necessary for your business operations. Document the dates of your rental season, camper use, and maintain separate records for personal vs. business expenses related to the camper. I'd also recommend looking into Section 280A limitations which govern mixed-use property deductions. This situation isn't straightforward, so consulting with a tax professional who specializes in rental properties would be worthwhile.

After reading your situation, I think you should check out taxr.ai - it really helped me with a similar mixed-use property question I had last year. I own a condo that I rent out half the year and live in the other half, and I was confused about what I could deduct. I uploaded my lease docs and some receipts to https://taxr.ai and got super clear guidance on exactly what percentage I could deduct for various expenses. They explained the whole "ordinary and necessary" test for business expenses in a way that actually made sense, plus gave me tips on documentation I needed to keep in case of an audit. Saved me tons of research time!

I wanted to follow up about my experience with taxr.ai after being skeptical. I decided to try it for my unique situation (I run an Etsy shop from my garage and had questions about home office and inventory storage deductions). I was honestly shocked at how helpful it was. I uploaded my floor plan, some receipts, and photos of my workspace, and it gave me specific guidance on exactly what percentage of my utilities and internet I could deduct. It even caught that I was under-deducting my materials costs! The best part was it explained WHY each deduction was valid based on actual tax code. https://taxr.ai was definitely worth checking out for anyone with a weird tax situation like the camper question.

For what it's worth, I had a somewhat similar situation a couple years ago with a vacation property that became part rental, and I ended up needing to call the IRS with specific questions about depreciation and mixed-use rules. It was IMPOSSIBLE to get through - kept getting disconnected after waiting on hold for 2+ hours. Finally, I used Claimyr and it changed everything. They got me a callback from the IRS in less than 2 hours! You can see how it works at https://youtu.be/_kiP6q8DX5c. Since you have such a unique situation with the camper rental setup, it might be worth getting official clarification straight from the IRS, and this was honestly the only way I could actually reach a human. Their site is https://claimyr.com if you're interested.

I have to admit I was totally wrong about Claimyr. After saying it sounded like BS, I was so desperate to talk to someone at the IRS about my missed stimulus payment that I tried it. Not only did it work, but I got a callback in about 90 minutes when I had previously spent DAYS trying to get through. The IRS agent was able to resolve my issue in just a few minutes once I actually talked to them. Sometimes being proven wrong is a good thing! Would definitely recommend for anyone needing actual IRS clarification on unusual tax situations like the camper/rental question.

Have you considered setting up an LLC for your rental business? That might give you more flexibility with deductions. I did that with my vacation rental and it makes the business/personal separation much clearer for tax purposes.

Just want to add something important - make sure you're tracking all your other rental-related expenses too! Property insurance, mortgage interest on the rental house, cleaning fees, advertising costs, property management fees if you use them, utilities during rental periods, repairs, etc. These are often much more straightforward deductions than the camper situation.

This is such a creative solution to help your family! I'm dealing with a similar mixed-use situation with my home office that doubles as a guest room. One thing I learned is that the IRS really looks at the "but for" test - meaning would you have incurred this expense "but for" the business activity? In your case, since you literally cannot operate your rental business without somewhere to live during the rental season, that strengthens your position significantly. A few additional considerations: Make sure you're documenting everything - dates you move in/out of the camper, rental bookings, any maintenance or improvements to the camper that are business-related. Also consider whether you're depreciating the house itself as rental property (you can't depreciate your primary residence, but since you're renting it out seasonally, portions may be depreciable). The seasonal nature actually works in your favor here compared to year-round mixed use. Keep detailed logs showing the clear business purpose during those 6 months. Good luck with your rental business!

This is such a thoughtful way to handle your family's situation! I'm really impressed by how you've turned a challenging circumstance into a successful business opportunity. From what I've seen with similar cases, your situation actually has some strong advantages for tax purposes. The fact that you ONLY use the camper during rental season and it's directly tied to your ability to operate the business makes it much more defensible as a business expense than typical mixed-use scenarios. A few things to consider beyond what others have mentioned: 1. **Timing matters** - Since you're using the camper exclusively during your rental season, you might be able to argue for a higher business-use percentage than the typical 50/50 split for mixed-use property. 2. **Documentation is key** - Keep a detailed calendar showing when you're in the camper vs. the house, along with your rental bookings. This creates a clear paper trail linking the camper use to business necessity. 3. **Consider the "exclusive use" test** - While you live in the camper, you're doing so specifically to enable your rental business. This isn't like using a car for both personal and business trips - it's more like temporary lodging required for business operations. 4. **Don't forget startup costs** - If this is your first year operating the rental business, some of these expenses might qualify as startup costs rather than ongoing business expenses, which could affect how you deduct them. Have you considered consulting with a tax professional who specializes in rental properties? Your situation is unique enough that getting professional guidance could really pay off, especially given the income you're generating from the rental.