OK first some background:
- my wife and I have had a vacation rental property for several years.
- In 2023, we used it for personal use for more than 14 days; therefore we were not allowed a loss
- In that year, in the Schedule E Worksheet, a bunch of stuff showed in column (d) Vacation Home Loss Limitation. This was exactly the amount to reduce our expenses to the point where we had an income of exactly $0 on the vacation rental.
- My understanding as of last year was that these "Vacation Home Loss Limitation" amounts would roll over and potentially apply this year
All that makes sense to me. Now this year I am doing my taxes and, sure enough, I do see those amounts carried forward from last year. There is stuff in row 18(c) Depreciation carryover and row 19(f) Operating Exp carryover. And the amounts match. All makes sense.
This year we used the home for less than 14 days and a loss is allowed. And this year's expenses apply in full without getting partially allocated to the "Vacation Home Loss Limitation" column. So there is a loss. Again, makes sense.
Finally my question. I see that the carryovers from last year (rows 18c and 19f) are all fully allocated to "Vacation Home Loss Limitation" (again) and basically don't apply to this year. i.e., they seem to be getting carried forward again. Is that expected? Why wouldn't they be included in the expenses this year?
Thanks
