Can you please explain what "Vacation Loss Limitation?" Is that the same as "passive losses," that can be carried forward to a following year to lower taxable income, or suspended until you sell your home? Also, does it make sense that I have "Vacation Loss Limitation" showing up on the Schedule E worksheet? I rented a spare bedroom of my principle residence, so it was not a "vacation home." I rented it out about half the year, and the other half of the year was personal use. I am an "active participant" if that matters. On the Schedule E Worksheet, all rental expenses, other than for mortgage interest qualified and real estate taxes, which are allocated to column c, called "Reported to Schedule E" - such as expenses for maintenance, utilities, etc., are being allocated between the column d, titled "Vacation Loss Limitation," and the column e, titled "Allocated to Personal Use." Does that make sense, or am I likely doing something wrong?
