For 2021 my vacation rental property is considered a mixed-use property and meets the definition of a personal residence per tax law based on the fact that personal use was >14 days and >10% of the rental days.
There were no loss carry forwards from prior years involved. I have correctly entered the details into TT.
Per the Schedule E worksheet the expenses were allocated to Columns (c), (d) and (e). In spite of some of the expenses being limited as "Vacation Home Loss Limitation" TT is still allowing a rental loss on Form 1040 based on a definition of a non passive activity found in Pub 925. (page 5). Because of this designation no Form 8582 was prepared. I do not qualify for the special loss deduction. I would like to be able to use the loss I just want to be assured this return is correct.
According to everything I have read about this issue no matter what the property is called, rental or residential,
passive or non passive, you can only deduct expenses until all the rental revenue is used up. The remaining expenses MUST be suspended and carried forward to subsequent years to be applied against appropriate rental income or until the property is sold.
