Confused by TT showing 2 different numbers of rental deductions

[whatatax69]

So my condo was rented 155 days or 42% of the year, if that matters.  I totaled and entered $5038 worth of expenses incurred for those 155 days in TT.  But when I come to the summary of Sch E TT only shows $3290 as being deductible.  I am not doing depriciation or anything beyond  the HOA fees, ins, taxes, utilities for those 155 days.  Why do I not get the entire $5038 deduction?  I was happy to  see an additional 20% bump added in later but that is another issue I  presume.  Appreciate any help on this.

[DianeC958]

If your Condo was less than 100% business use your losses will be limited to the amount of income that you received.

If your Condo was available for rent and you did not have a renter, it is considered rented for the full year even though you did not have a renter and receive income.

If the Condo was not available to rent for other reasons, the date placed in service needs to be the date that the Condo was available for rent and then you can take take the full amount of the loss depending on your income.

You should include depreciation for the Condo, because even if you do not take Depreciation currently, when you sell the Condo you will have to recapture the Depreciation.

Passive Activity and At Risk Rules

[whatatax69]

Many thanks for your input Diane.  Although we did not have a loss it is a bit staggering to realize that the IRS will require us to recapture depreciation - taken or not!  Never would have guessed that. 

My original question remains in that TT puts out two numbers  for expense deductions a) the total of management fees, utilities, etc for the 5 months of rental activity which is $5038 vs the $3290 they deduct from my rental income.  Any explanation for that difference.  Thanks again.

[ThomasM125 · Accepted solution]

Your expenses are being reduced based on the personal use of the rental space for some reason. When you enter your rental expenses, you are asked if you want TurboTax to factor in your personal use of the rental space or if you want to do that math yourself. If you choose to have TurboTax do the math, then your deductible expenses will be less than what you entered, by virtue of the percentage of time you used the space for personal purposes.

You will have to go back through your rental entries and see where you indicated that you used the rental area for less than 100% rental use.