I have an aircraft hangar (Property Type 4, Commercial Building) that I rent out space in and use part of myself, the percentages vary month to month.
In 2020, on the Sched E Worksheet, I made a mistake thinking a simple solution was to fill in Days Rented at Fair Value 321(88%) and Days of Personal Use as 45 (12%), even though I was there all year, as were various renters. I figured it reflected my % of use.
Sched E worksheet placed ALL of the depreciation as Vacation Home Loss Limitation (Col d). It also placed the 88% Days Rented at Fair Value portion of the General Home Operating Expenses there. The balance,12% Allocated to Personal Use (Col e).
This seems unfair that I can't deduct any of those expenses as the majority of use was renters. This is not a Vacation Home; it is a Commercial Building. Schedule E Worksheet now carried those Vacation Home Loss Limitations over to 2021 and now 2022. Does that mean at some time I will get to use them? Is there a better way to allocate my usage?
