Hi sjrcpa - Thank you for posting this answer on the excess vacation rental deduction.  Too bad Lacerte doesn't do it automatically, so I appreciate you posting this. 

I did have a question:  Is the other side of the entry a "distribution"?  I have to print a balance sheet, and when I put this negative deduction in, it creates an imbalance.  If I put in a "distribution" of cash and marketable securities on screen 22.1, this creates a distribution for each partner on the K-1.  

Logically, I understand that the cash paid for the expenses has a component that is being paid for the business and a portion being paid for the personal use (i.e. the partnership paid it to the partner so he/she could pay their personal portion of the cleaning, mgt fee, condo fee, etc....).  This seems logical, but I wanted to confirm that partners should expect this "distribution" to appear on their K-1, even though they did not receive actual cash payments.

Thank you for your help.