DianeW777
Expert Alumni

Get your taxes done using TurboTax

There is nonqualified use of your home for every day it was available for rent. This is specifically referring to rental activity which is 'nonqualified' time that must be accounted for when making sure you get the full amount allowed for the home sale exclusion. There will be a taxable amount of the gain due to the nonqualified use. This is not new tax law. 

If you enter the passive loss carryover as instructed it will be included as part of your rental activity loss for the year of sale. The full amount remaining in the year of sale is used on your Schedule E and will carry directly to the Form 1040.

 

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