Oregon Lodge Denied Tax Break for Gradual Start-Up Year (1)

The owner of a vacation rental isn’t entitled to claim depreciation for the 2018 tax year when he spent more time renovating the property than renting it, the Oregon Tax Court, Magistrate Division, ruled.

Donald W. Godard spent most of 2018 renovating the 80-year-old Hansen Lodge in Seaside, Ore., and rented it just twice to family members. He didn’t begin advertising online or regularly hosting unrelated guests until 2019.

Magistrate Allison R. Boomer agreed with the Oregon Department of Revenue that the property wasn’t available to rent for most of 2018, so Godard’s expenditures for the year must ...