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pdickermn
New Member

When Rental property personal use greater than 10%, deprecation not listed?

I have vacation rental condo that we rent around 100 days per year.  I've noticed on my 2015 return, where we used  condo for 14 days (>10%), the depreciation expense is calculated on form 4562 but not listed on Schedule E line 18.  In 2014, the depreciation is calculate and also on Schedule E. Why is depreciation not "counted" when the personal use is >10%?  I've gone through the various IRS forms, but don't see why depreciation is limited if the personal use is greater than 10%.


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Accepted Solutions
Critter
Level 15

When Rental property personal use greater than 10%, deprecation not listed?

You are using the vacation home rules and due the personal use your deductions (including the depreciation) is limited to the income.   Excess deductions are carried forward.  Review the Sch E & the 8582 form plus the vacation home worksheets for the calculations.    http://www.kiplinger.com/article/taxes/T010-C000-S002-5-irs-rules-for-renting-out-your-vacation-home...

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4 Replies
Critter
Level 15

When Rental property personal use greater than 10%, deprecation not listed?

You are using the vacation home rules and due the personal use your deductions (including the depreciation) is limited to the income.   Excess deductions are carried forward.  Review the Sch E & the 8582 form plus the vacation home worksheets for the calculations.    http://www.kiplinger.com/article/taxes/T010-C000-S002-5-irs-rules-for-renting-out-your-vacation-home...
pdickermn
New Member

When Rental property personal use greater than 10%, deprecation not listed?

Thanks Critter#2. Yes, I understand that my deductions are limited to the income, however, I still expect to the see the calculated depreciation from Form 4562 on Schedule E line 18. It showing zero depreciation on Schedule E even though my Form 4562 shows the depreciation.
Critter
Level 15

When Rental property personal use greater than 10%, deprecation not listed?

Only the deductible amount after all other expenses will show on the Sch E.... the rest is carried forward until such a time as it can be used.
pdickermn
New Member

When Rental property personal use greater than 10%, deprecation not listed?

yep - makes sense.  thanks.

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