Question
Client has vacation home that rented for 275 days. Personal use for remaining 90 days. Why does putting personal use days in Sch E screen make entire loss deductible?
I have the property marked as a Vacation/Short Term Rental. I have split the expenses out between direct and non-direct. When I put in the number of personal use days, it is allocating the direct and non-direct expenses correctly, but it is allowing the entire loss on the rental as non-passive and deducting it on Sch. 1. It won't pull to Form 8582 at all. Should I manually allocate the direct and non-direct expenses to the correct amounts and just remove the personal use days in order to force the passive loss to go to the correct forms? I do not have the "nonpassive activity" box checked. Thank you in advance.
