topic reporting second home for Schedule E in Investors & landlords

reporting second home for Schedule E

RustyShackleford — Sun, 15 Feb 2026 17:54:43 GMT

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).

Re: reporting second home for Schedule E

MindyB — Sun, 15 Feb 2026 18:01:40 GMT

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.

Re: reporting second home for Schedule E

RustyShackleford — Sun, 15 Feb 2026 20:01:52 GMT

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.

Re: reporting second home for Schedule E

MindyB — Sun, 15 Feb 2026 21:17:10 GMT

@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.