Skip to main content
Level 2
September 12, 2026
Question

How can I force vacation home limitations in Lacerte?

  • September 12, 2026
  • 2 replies
  • 13 views

Client uses a cabin for 20 days in the year and lets caretaker use it all other days in return for some maintence work valued at $2800. She says days rented are 345. In this case all losses are allowed because personal use is less than 10% of days rented. But since the ‘rent’' is below market, the limitation should apply. I can't seem to force the loss limitation and don't want to change the usage days client gave me or claim the activity has no risk, the only two ways I can see to force the loss limitation. Any ideas??

2 replies

sjrcpa
Level 15
September 12, 2026

It’s not a Schedule E Rental Property and not subject to the vacation home rules. You have zero days rented at FMV. The $2,800 “rent” gets reported as Schedule 1 Other Income.

The more I know the more I don’t know.
Level 2
September 12, 2026

Got it.