reporting second home for Schedule E

Forum|Forum|3 months ago
February 15, 2026
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We converted our short-term rental to a second home in 2024, so it's just a second home for all of 2025. We did rent it for one one day for $120. My understanding is that we don't have to report this rental income, but we also can't take any expenses on the home on Schedule E (but can deduct real-estate taxes and mortgage interest in Schedule A).

But I'm confused about how to enter this in Turbotax. If I say that we rented for 1 day and used for personal use 16 days (an estimate), and enter the rental income and also the expenses, it actually deducts 1/17 of the expenses from the rental income and gives me a Schedule E loss.

This seems completely contrary to the rule I quoted in the first paragraph. Should I instead say I didn't rent it at all, and let Schedule E be deleted ? (I've kept my own records of depreciation during the period it was a short-term rental, so don't need Schedule E for that).

Best answer by MindyB

Under IRS Section 280A, commonly known as the "Augusta Rule", you are correct that because you rented the home for fewer than 15 days, the income is non-reportable and the associated rental expenses are non-deductible. Since the $120 isn't necessary to be reported, you should delete Schedule E for this property so that your mortgage interest and property taxes flow correctly to Schedule A as second home deductions.

See: 10 Tax Tips for Airbnb, HomeAway & VRBO Vacation Rentals for information you may find helpful regarding the 14-day Rule.

MindyBAnswer

Level 13

See: 10 Tax Tips for Airbnb, HomeAway & VRBO Vacation Rentals for information you may find helpful regarding the 14-day Rule.

RustyShacklefordAuthor

Level 5

Ok, thanks, but if I don't have Schedule E the mortgage interest and real-estate tax can't "flow" to Schedule A. So I guess I just simply enter them for Schedule A the same as I do the interest and RE tax on my main home.

MindyB

Level 13

@RustyShackleford, correct, if you never entered the info into the regular itemized deductions, then yes you should do that now. And remove any Schedule E input.