How do you get the system to limit a rental loss on a vacation home that is considered a residence? Income less expenses including deprecation results in a net loss on Schedule E, but the property was used over 14 days or over 10% of rental days. My understanding is expenses are limited to income and the rest are carried over to future years.
I don't use ProConnect, so maybe this won't help, but ...
Are all of the expenses being used against the income to create the loss? Or are just certain expenses being allowed to create the loss?
My point is that certain expenses ARE allowed to create an allowable loss. If the total of rental-specific expenses (Advertising, Commissions, Management Fees, and other expenses) and the rental portion of Mortgage Interest and Real Estate Tax are greater than income, they can create an allowable loss.
If that doesn't solve it, hopefully someone that used ProConnect (or maybe Lacerte) will come by with an idea for what to do.
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