Forgive me if this is my second overture. I'm not certain the first went through before my PC started going berserk.

TP has a rental vacation home which in the past the prior accountant listed as vacation property rented 365 days. The special allowance applied and they were allotted their portion of current and prior loss on SCH 1.

This year, TP has used the home 42 personal and rented only 7 days. (we have opted not to use the seven day rule at this juncture) making it not a vacation property but a single residence.

The entire loss for the current SCH E  plus their proportionate share of prior year losses are being deducted in full on Sch1. This makes no sense to me. I would think I'd be limited. Can someone weigh in and explain?