cmg1
Level 3

Investors & landlords

Hi Amy,

 

Hoping your still helping people.

 

In 2020 My sched E shows the full years depreciation ($5688) as a “Vacation Home loss Limitation” because it was rented for 91 days and I mistakenly took 15 days personal use while fixing it up on various days during the year. It sat vacant the rest of the year. It is not a vacation home by any means.  The Asset entry Worksheet and the Depreciation and Amortization Report both add in the $5688 for that year, as though I was able to deduct it. I ran through a mock sale and TTax included the 2020 $5688 (that was not allowed) as being taken and reducing the basis even though I was not allowed to deduct it. In other words, I would have to pay tax on the 2020 $5688 depreciation I was not allowed to write off against income in 2020. Am I missing a check box somewhere?

If this is the case, I may be better amending the return to show 0 days personal use.

Thanks again

Carl