Doing my Schedule E, modeling for tax court vs IRS method. One thing I'm confused by - in column D of the Sch E worksheet, labelled "Vacation Home Loss Limitation" there are all the various expenses from the rental property that are not allocated to either schedule E or personal use. It's clear that the amounts reported to Sch E are equal to the income on the property -- this makes sense as I can't have a loss due to passive activity limits. Then whatever is not allocated to personal use is left in this mystery loss limitation column.
But what is not clear to me is where these amount end up going? I would have thought they would be carried forward as some kind of passive loss, but I can't find anywhere on another form that matches these values.
I have carried forward passive losses from previous years that I can see in Form 8582, but I would expect that these losses should accumulate (increase) by the amount of disallowed loss each year because the property shows a book loss in each of these years.
