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The IRS (and TurboTax) actually treats boats with sleeping, cooking, and toilet facilities very similarly to a vacation house.   Because you used the boat for personal reasons for more than 14 days (and more than 10% of the rental days), the IRS considers this a "dwelling unit used as a home."  You cannot simply deduct 50% of everything.   You must divide expenses into two categories (for a dual-use residence):  Direct Rental Expenses: Expenses that only apply to the rental (e.g., a commission paid to a charter agent or extra insurance for the rental period). These are 100% deductible against rental income. Allocated Indirect Expenses: These are your "50/50" expenses (maintenance, slip fees, cleaning, fuel, etc.).   You can only deduct these expenses up to the amount of rental income you earned (the "Hobby Loss" Limit);. You must deduct interest and taxes first, then operating expenses, then depreciation (only until your rental income hits zero);.   Most boat owners should use Schedule E ("passive" rental activity)... you provide the boat and basic services (e.g., cleaning between rentals, maintenance).  There is no self-employment tax.   Divide your shared expenses (maintenance, dockage) by the total days of use to find the rental portion, but don't expect to claim a net loss on your 1040.   You should use Schedule C (Profit or Loss from Business)... if you run a "charter business" or "hotel on water" (e.g. you provide substantial services primarily for the guest's convenience -- you act as the captain/crew, provide meals, or offer daily maid service).     You might be able to deduct a loss against your other income (if you "materially participate"), but you must pay the 15.3% self-employment tax on your profits.

Enter Social Security Income (SSA-1099): Open or continue your return. Under Federal tab, Click on Wages & Income, and then Scroll down to Retirement Plans and Social Security. Click Start/Update next to Social Security (SSA-1099, RRB-1099). Answer YES to the question "Did you receive Social Security or Railroad Retirement benefits?" and follow the prompts to enter your amounts. If you and your spouse both have forms, you'll enter them on separate screens during this interview.   You can also search for "SSA-1099" (Search Bar/Box), and then Click on the "Jump to...." link that appears.

However, I think Turbotax should have caught this error in the final analysis and ask to fix it which it did not; so I am faulting Turbotax for failing to correct to notify me of this omission. This should  be a BIG RED Flag in my opinion. Thank you again for pointing out the issue to me. I checked the amended return and it did change my tax refund to what the IRS audited for me.  Thanks again. Cheers.

Exactly! Imagine me banking with Chase and telling you that "oh yea, I took my fees and now I have ZERO idea where the money that was in MY bank account went to, even though it's MY bank account and I see money go on and out at will " .... lmao. Turbotax. Thanks for the other years, but with two groups made on FB that i see with 317k ppl in each  having the worst experiences this year in particular,  shows me that TT is not the company to work with anymore.

In my case, I do have net income that exceeds the cost of the pianos, so I can just take 100% for 2025 with section 179 and be done. Bonus depreciation wouldn't apply here. Am I correct on my reasoning? Thanks 

Grantor trusts can output a weird format.  It definitely takes some getting used to.   Can you please let us know what the errors are that you're seeing?  It may be that we can help.  Certainly if there are errors in the program it helps to know what they are specifically.