Thank you. You are the first person at TT that understands what I am questioning. I have sent the file. The token number is 975231. The property is considered a mixed-use property. This year it is considered a "residence" for tax purposes. What I disagree with is that after taking the allowed deductions, TT is allowing additional deductions in excess of my income therefore creating a loss. The loss is then carried over to the 1040 and is being deducted from my income. I think this is an error and I don't know how to fix it. Whatever the definition of the property for 2021, I don't think I can ever take a loss.
I have been using TT since 2010 and have had the same scenario on a former vacation rental which I sold in 2020. A Form 8582 was created then and the losses were carried forward and freed up when the property was sold.
FYI: I am using Family & Business CD as I always have.
