Depreciation Carry-over, Schedule E worksheet

[Curt14]

I have entered revenue and expense in the 2025 Schedule E Worksheet for a rental property. However, the program does not utilize the past depreciation carryover that is shown on the worksheet to offset a small gain for 2025. Is this a program problem.  Has always worked corrected in previous years.

Curt14

[AmeliesUncle]

Can you clarify?  There isn't a "depreciation carryover".  Do you mean there was a "Passive Loss Carryover" that was reported on Form 8582?

[Curt14]

Thanks for the response.  I was referring to line 18c of the Schedule E worksheet.  It is identified as Depreciation Carryover and as I understand it, it results from prior years Vacation loss Limitation, as I use this property myself for some weeks each year.  Hence, I am unable to realize a loss on the rental, and as a means of recording $0 income instead of an operating loss each year, the normal annual depreciation is not fully utilized, and is carried-over to future years.  In past returns, some amount of Depreciation Carryover has always been added to current year expense to offset enough of current year income to result in $0 net income.

In the 2025 Schedule E worksheet, a total amount of Depreciation Carryover is listed in column "a"--don't know where this value is stored in the program--but the program lists only "$0" in column "c" as the amount to be entered onto the 2025 Schedule E, and the full mount of Depreciation Carryover is recorded in the Vacation Loss Limitation Column, column "d".  As the worksheet now stands, I would have a small net profit for 2025.  If the program assigned a small amount of the Depreciation Carryover to the current year--column "c", I would again have a $0 net gain/loss for 2025, as has been the case in previous years.

Hope this is more clear. Thanks

Curt14

[AmeliesUncle]

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@Curt14 wrote:

 Vacation loss Limitation, as I use this property myself for some weeks each year. 

In the 2025 Schedule E worksheet, a total amount of Depreciation Carryover is listed in column "a"--don't know where this value is stored in the program--but the program lists only "$0" in column "c" as the amount to be entered onto the 2025 Schedule E, and the full mount of Depreciation Carryover is recorded in the Vacation Loss Limitation Column, column "d". 

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Ah, okay, Vacation Home limits make sense for a depreciation carryover.

To start off with, what are the number of rental days and the number of personal days in 2025?  If the number of days in 2025 DON'T classify the home as a "Vacation Home" ... I would need to research if the suspended Vacation Home carryovers are able to be used or if they are able to be applied when it is NOT classified as a "Vacation Home" this year.

[Curt14]

Thanks for the response, AmeliesUncle,

During 2025 I used the vacation home for personal use for only 20 days, and have entered that figure.  (In prior years, I used the property between 30 and 60 days.)  I haven't received the final figures on total days rented yet, but I put in an estimate of 200 days for 2025.  

I just tried changed the estimate of 200 day estimate to a "real" number, but it made no difference.  Then I tried changing the "days used for for personal use" from 20 days to 40 days, and "presto" the program did apply the Depreciation Carryover to 2025 expenses, making my net profit/loss equal to $0. So I guess I have found the answer, but don't know why the program works in this fashion, or what the threshold is for allowable personal use.

Thanks for giving me the idea of playing with the days of use.

Curt14

[AmeliesUncle]

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@Curt14 wrote:

personal use for only 20 days ... an estimate of 200 days for 2025.  

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It becomes a "residence" when it is used for personal use of the GREATER of (a) 15 days or (b) more than 10% of the rental days.

If you used it for personal use for 20 days, hypothetically if it was used for 201 rental days, that would be over 10%, making it a "residence" and would use the Vacation Home carryover.  With that said, I'm not sure how if the program rounds things, so I'm not sure if 201 rental days would trigger the program to change things or not.

The amount of personal use dictates what KIND of loss carryover is involved ("Vacation Home" loss versus "Passive Loss").

[Curt14]

Thanks for the detailed response.  It now makes sense. Further, I discovered that I need the count the days my daughter used the place for free.  So, I have about 30 days of "personal" use, triggering the use of Depreciation Carry over.

Curt14