Schedule E Worksheet for Second Home

I have rented out my 2nd home every winter for 6 months for the past several years. I've always been able to deduct 50% of my expenses like condo fees, depreciation, repairs, and supplies on Schedule E, and 100% of expenses related to the rental like utilities, cleaning, and repairs. I do have 4 other rental properties and these calculated correctly.

 

I've been using Turbotax without difficulty for a long time. Now I'm using it for the 2019 tax year and I entered my expenses on the Schedule E worksheet. Turbotax disallows condo fees, repairs, supplies, etc, even though it says enter % if not 100%.  It entered 0 on the amount transferred to Schedule E instead of the full amount.

 

I did not select "Owner Occupied Rental" as this seems to be for shared use, and the "Vacation Home Boxes" are blank where I could elect Tax Court Method or if I owned the property for less than one year. I indicated it was rented 185 days with 180 days of personal use. I adjusted the % business use on the Assett Depreciation Worksheet to 50% so the amount of depreciation shown is correct, but it also puts 0 as the amount transferred to Schedule E. Interest and Taxes are handled correctly, with 50% deducted on Schedule E and 50% transferred to Schedule A. It permits me to deduct 100% of the real estate commission. The disallowed losses are either in the vacation home disallowed column or the personal use column.

 

Sorry for being long winded, but I wanted to provide details that might help you show me what I'm doing wrong. Thanks in advance for your help!!!

 

Carl
Level 15

Investors & landlords

I indicated it was rented 185 days with 180 days of personal use.

That might be the problem.  Was the property classified as a rental for the entire 365 day tax year? If so, then your numbers are correct. But if it was classified as a rental for 185 days, then you have ZERO days of personal use "WHILE IT WAS CLASSIFIED AS A RENTAL".

 

Investors & landlords

You should not need to adjust the "business use" percentage.

 

Select Vacation or short-term in the Property Profile section and then enter the number of days of rented at a fair rental price and the number of days of personal use. 

Investors & landlords

I rent out my home for 6 months every year. Will the total deductions on Schedule E be limited to the total rental income?

Investors & landlords

this may help, it appears not

 

https://www.irs.gov/taxtopics/tc415

 

Investors & landlords

Sorry it appears yes you are limited to the amount equal to the income

Investors & landlords

Per Section 280A, a net loss on a dwelling used for personal purposes for the greater of 14 days or 10% of the fair rental days that is attributable to rental use is a nonpassive loss.