Hello,

I have a client with a second home - rented 59 days and used 40 days so it qualifies as a vacation home. 

If I just put in the rental and personal use days and the expenses the software is allowing the loss on Schedule E despite AGI being well in excess of the phaseout for the $25,000 special allowance. 

The only way I can get the loss to be suspended is to check the "tax court" allocation method for interest and taxes.  

Has anyone else had similar experiences or found a work around?

Thanks!