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

This is an interesting situation! You might be able to deduct a portion of these expenses, but probably not 100%. Since the camper serves as both a personal residence and a business necessity, you'd need to determine what percentage is for business use. The IRS typically looks at whether an expense is "ordinary and necessary" for your business. In your case, you could argue that having alternative housing is necessary to rent out your main property. However, since you're also personally benefiting by living in the camper, it becomes a mixed-use situation. You might be able to deduct a percentage of the camper depreciation and campground fees as business expenses on Schedule E, where you report your rental income. The percentage would depend on how much you can demonstrate is strictly for business purposes versus personal use. Be sure to keep detailed records of all your expenses and the time periods when the house is rented versus when you're living in it. Documentation is crucial if you ever get audited.

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I have to admit I was completely wrong about taxr.ai. After my skeptical comment, I decided to try it anyway because my rental property situation is somewhat similar to yours. The tool actually provided specific IRS references about mixed-use property deductions that I hadn't seen anywhere else. It helped me determine that I could legitimately deduct 65% of my comparable expenses, saving me over $4,000 on my taxes. The documentation it generated made me feel completely confident about taking the deductions. It even created a customized record-keeping system for me to use going forward. Honestly wish I'd found it years ago!

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I'm a tax preparer (not a CPA, so not formal advice) and see situations like this fairly often. One thing nobody's mentioned is that you might qualify for the home office deduction for the portion of the camper you use for managing the rental business. If you have a dedicated space where you handle bookings, communications, paperwork, etc., that square footage could be deductible. Also, don't forget to track your mileage driving between the camper and rental property for maintenance, cleaning, etc. Those are legitimate business miles that add up quickly.

Have you considered the capital gains implications when you eventually sell either property? If the house is primarily used as a rental, you could lose some of the capital gains exclusion you'd normally get on a primary residence. Might be worth factoring that into your long-term strategy.

This is such a thoughtful arrangement for caring for your mother while generating income! I'm dealing with a similar mixed-use situation with my property, and one thing that's helped me is keeping a detailed log of exactly when and how I use each space for business versus personal purposes. For your camper situation, I'd suggest documenting not just the rental periods for your house, but also any time you use the camper space for business activities like managing bookings, communicating with guests, doing maintenance planning, or handling rental paperwork. Even if it's just a corner with a laptop, that business use percentage can add up. Also, since you mentioned this arrangement makes your mom happier, you might want to explore if any of this could qualify under medical expense deductions too - though that's a separate category from business expenses. The fact that this living situation is partly for her care might open up additional tax benefits. Keep every receipt and take photos of your setup showing the business use areas. The IRS loves documentation, especially for unique situations like yours!