Missing 8582

[KJT17]

I completed Schedule E for a vacation home rental property in which I actively participated.  This schedule shows a loss of $3,500 for 2024.  However, Turbo Tax Home and Business did not generate a form 8582 which I think is needed because our income exceeds $150,000.  I believe 8582 would have disallowed this loss due to exceeding the maximum income limitation.  What am I missing?  Thanks.

[ThomasM125]

It is possible you have passive income elsewhere on the tax return that is offsetting the loss such that you don't have a net passive loss for the year.

[KJT17]

Thomas:  thanks for your idea.  Unfortunately, it does not apply.  I had no other passive income.  I did have prior years; losses to be caried forward.  Any other thoughts as to why form 8582 was not generated?

[MarilynG1]

A vacation home rental is subject to restrictions, namely, that you can only deduct the portion of your expenses directly related to the rental, and some of your operating expenses and depreciation may be carried over to subsequent years rather than deducted in full.

You are not allowed to take losses on a rental property that has a mixture of personal and business use, as you mentioned, and the loss should be carried over. 

However, this only applies if you use it for personal purposes more than the greater of:

14 days, or

10% of the total days it is rented to others at a fair rental price.

If your personal use did not exceed that amount, TurboTax was correct in not applying the limitation to the loss on your rental property.

You may need to step through the Rental section to make sure your rental is being designated as a passive activity to generate Form 8283. 

Here's more discussion on Vacation Home Rental Loss.

@KJT17