Schedul E and vacation home.

Forum|Forum|1 year ago
March 5, 2025
1 reply
31 views

Hi-client has a second home . 73 days rental 14 days personal. The 14 days exceeds the 10% threshold

so it becomes a vacation home instead of full rental. I put all the expenses on Schedule E and it allocates

the correct percentage of everything (84%) but I can't seem to get the program to allocate the 16% balance to schedule A for the mortgage interest. It does populate it for the real estate taxes. I have type 3 -vacation short term rental selected and 73 and 14 for the rental/ personal days.

Anyone know what I am doing wrong? I've tried checking the tax court method nothing changes . If I check the owner occupied box it does allocate but gets an error saying this is a vacation home. I've tried using the 1098 and still no luck.

Does it have to be done manually? Thanks in advance.

ProSeries Professional

This topic has been closed for replies.

rbynaker

Level 13

What happens if you change the personal use to 15 days?

B

billr617Author

Level 4

If I change it to 15 days it works. Shouldn't it work at 14 though since that is greater than 10% of the rental, (7.3 )days? Does the program ignore it if it is 14 days, or am I misunderstanding the 14 day/10% rule? Thanks for the help!

rbynaker

Level 13

It's 280A(d)(1) and 14 days does not "exceed the greater of 14 days or 10%".

The mortgage interest rules in 163(h)(4)(A)(i)(II) incorporate 280A by reference.

You should still get taxes (subject to SALT cap) since taxes are not limited to a qualified residence.

Rick

Sign up

Login with SSO

Let's get you signed in

Login with SSO