Short Term Rental losses ignored in 2025 but not in 2024

[user17758308755]

I have had losses on a passive short term rental in 2024 & 2025.  In 2024, turbotax carried the loss to form 8582 and added it to prior years unallowed losses.  It also carried it to Schedule E Worksheet and it included depreciation in this.  But in 2025, with a very similar P&L, turbotax is zeroing out the income/loss and depreciation on those forms.  I have checked all the questions and check boxes and they are the same for both years.  The only significant change was that we lived in the rental for 33% of the year.  Any idea if TT is calculating this correctly?  It seems very odd that it would not calculate the same as 2024 (less the 33% of personal use). 

Thanks!

[maglib · Accepted solution]

@user17758308755  IRS rental losses are limited or disallowed if a property is used personally for more than 14 days or 10% of total rental days. If deemed a "residence," losses cannot exceed rental income. This is why you are seeing the difference.  

[user17758308755]

Thank you!

I had searched for this a few different ways and never came up with that answer!

[maglib]

glad I could help. Please thumbs up and mark as best answer to shut the post off. Good luck completing your returns.