Solved: Moved into my rental unit. Line 38 AGI $106K. TT calculated the a loss of $775. Why has it limited the loss on the rental, I believe I am well under the loss limits.
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Moved into my rental unit. Line 38 AGI $106K. TT calculated the a loss of $775. Why has it limited the loss on the rental, I believe I am well under the loss limits.

Turbo Tax is reducing my income on the rental by the correct portion of Interest and Real Estate tax only. It however is not using about $1,000 in other expenses such as a portion of depreciation , maintenance, insurance, etc. Turbo Tax has come up with a line 22 deductible real estate loss of $775 which I believe should be about $1000 higher. At a line 38 AGI of $106K I believe I should not be affected by the loss limitations. I moved from Arizona to Massachusetts on May 1, 2017 and there is a clear division of expenses between the rental and personal use period. See attached PDF. Not the totals in line 7, 9, and 17 is just for the rental period not for the time I used the house personally

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New Member

Moved into my rental unit. Line 38 AGI $106K. TT calculated the a loss of $775. Why has it limited the loss on the rental, I believe I am well under the loss limits.

Review the rental interview section in the federal income section. Continue through the federal interview screen labeled "Was This Property Rented for All of 2017?".

Check the number of days that you listed the property as "Days rented at a fair rental value".

Then check to see if you entered an amount in the Personal use during the year. This number is usually blank or zero.

Instructions on this screen ask you to not include days you used it as your main home before (or after) renting it, if the unit was rented 12 months or more or will be in the future.

In the year you convert your property from personal use to a rental, the days you lived in the home as your primary residence prior to conversion do NOT count as personal use days.

In the year you convert your property from a rental to personal use, the days you lived in the home as your primary residence after the conversion do NOT count as personal use days.

If you enter a number of days in the personal use box, the program calculates as if this was a vacation home rental and allocates expenses, resulting in a lower allowed loss. I hope this helps.



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New Member

Moved into my rental unit. Line 38 AGI $106K. TT calculated the a loss of $775. Why has it limited the loss on the rental, I believe I am well under the loss limits.

Review the rental interview section in the federal income section. Continue through the federal interview screen labeled "Was This Property Rented for All of 2017?".

Check the number of days that you listed the property as "Days rented at a fair rental value".

Then check to see if you entered an amount in the Personal use during the year. This number is usually blank or zero.

Instructions on this screen ask you to not include days you used it as your main home before (or after) renting it, if the unit was rented 12 months or more or will be in the future.

In the year you convert your property from personal use to a rental, the days you lived in the home as your primary residence prior to conversion do NOT count as personal use days.

In the year you convert your property from a rental to personal use, the days you lived in the home as your primary residence after the conversion do NOT count as personal use days.

If you enter a number of days in the personal use box, the program calculates as if this was a vacation home rental and allocates expenses, resulting in a lower allowed loss. I hope this helps.



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