Thanks @AmyC . I reviewed IRS Pub 925 as you suggested, and I see that there is a provision stating that the following activity is not considered passive:
"The rental of a dwelling unit that you also used for personal purposes during the year for more than the greater of 14 days or 10% of the number of days during the year that the home was rented at a fair rental."
Based on that, it sounds like this would not be considered a passive loss, and can't be deducted from my income. Would you agree that this is the likely reason that it's not included in TT 'net income' calculation? My next question would be whether this loss may carry forward or if expenses incurred in 2023 would become part of the basis and could be depreciated in future years.
