Sch E worksheet is reducing deductions

Forum|Forum|1 year ago
April 4, 2025
2 replies
12 views

Client has a rental. It is a single family home, NOT a vacation home. It was rented all year. However, the worksheet is reducing deductions -- putting some of them under "vacation home loss limitations." I have looked that worksheet up and down. I don't have vacation home checked. I don't say owner occupied. I say it was rented all year with zero personal days.

What else should I look for or is this some random mid season bug?

Thanks!

ProSeries Professional

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Best answer by rbynaker

Could there be a carryover of prior vacation home expenses? I don't remember how that works in ProSeries.

I'd say delete the Sch E Wks and start over but you don't want to lose the asset history so maybe start a new one with the same inputs and see if PS is consistently weird or if there's just some corrupt data somewhere.

A

ajpAuthor

Level 6

Adding that the owner is materially and actively participating -- no question there. Those boxes are checked.

rbynakerAnswer

Level 13

Could there be a carryover of prior vacation home expenses? I don't remember how that works in ProSeries.

I'd say delete the Sch E Wks and start over but you don't want to lose the asset history so maybe start a new one with the same inputs and see if PS is consistently weird or if there's just some corrupt data somewhere.

A

ajpAuthor

Level 6

That's what it is! Thank you.

She lived in the house for part of the first year that it became a rental.

T

TaxGuyBill

Level 15

@ajp wrote:

That's what it is! Thank you.

She lived in the house for part of the first year that it became a rental.

Take a step back. Was she using the house only BEFORE it became a rental, and NOT after it became a rental? If so, there should not be "vacation home" losses, and you may need to amend the prior tax return (if there was NO person use AFTER it was converted to a rental, the "personal days" should be zero; you would need to MANUALLY prorate the expenses for that year for the rental period).

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