Depreciation Carry-over, Schedule E worksheet

Forum|Forum|6 months ago
January 22, 2026
1 reply
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I have entered revenue and expense in the 2025 Schedule E Worksheet for a rental property. However, the program does not utilize the past depreciation carryover that is shown on the worksheet to offset a small gain for 2025. Is this a program problem. Has always worked corrected in previous years.

Curt14

AmeliesUncle

Level 15

Can you clarify? There isn't a "depreciation carryover". Do you mean there was a "Passive Loss Carryover" that was reported on Form 8582?

Curt14Author

Level 2

Thanks for the response. I was referring to line 18c of the Schedule E worksheet. It is identified as Depreciation Carryover and as I understand it, it results from prior years Vacation loss Limitation, as I use this property myself for some weeks each year. Hence, I am unable to realize a loss on the rental, and as a means of recording $0 income instead of an operating loss each year, the normal annual depreciation is not fully utilized, and is carried-over to future years. In past returns, some amount of Depreciation Carryover has always been added to current year expense to offset enough of current year income to result in $0 net income.

In the 2025 Schedule E worksheet, a total amount of Depreciation Carryover is listed in column "a"--don't know where this value is stored in the program--but the program lists only "$0" in column "c" as the amount to be entered onto the 2025 Schedule E, and the full mount of Depreciation Carryover is recorded in the Vacation Loss Limitation Column, column "d". As the worksheet now stands, I would have a small net profit for 2025. If the program assigned a small amount of the Depreciation Carryover to the current year--column "c", I would again have a $0 net gain/loss for 2025, as has been the case in previous years.

Hope this is more clear. Thanks

Curt14

AmeliesUncle

Level 15

@Curt14 wrote:
Vacation loss Limitation, as I use this property myself for some weeks each year.

In the 2025 Schedule E worksheet, a total amount of Depreciation Carryover is listed in column "a"--don't know where this value is stored in the program--but the program lists only "$0" in column "c" as the amount to be entered onto the 2025 Schedule E, and the full mount of Depreciation Carryover is recorded in the Vacation Loss Limitation Column, column "d".

Ah, okay, Vacation Home limits make sense for a depreciation carryover.

To start off with, what are the number of rental days and the number of personal days in 2025? If the number of days in 2025 DON'T classify the home as a "Vacation Home" ... I would need to research if the suspended Vacation Home carryovers are able to be used or if they are able to be applied when it is NOT classified as a "Vacation Home" this year.