You are not allowed to take losses on a rental property that has a mixture of personal and business use.
However, this only applies if you use it for personal purposes more than the greater of:
If your personal use did not exceed that amount in 2021, TurboTax was correct in not applying the limitation to the loss on your rental property. On the other hand, if your personal use exceeded that amount of time, then you should not be allowed to take a loss on the property. You may want to check the personal and rental days you entered to make sure those are accurate for 2021. The type of property on Line 1b of Schedule E should be 3 for a vacation rental and the fair rental and personal use days will be listed next to it. If those are not correct, you will need to edit the general information of your rental property.
