TaxGuyBill
Level 15

When you say "Vacation Home",  you mean a home that is used for BOTH personal use and rental use, right?

Although Passive Loss carryovers are fully deductible in the year of sale, I don't think there is any clear guidance if Vacation Home carryovers are deductible.  Because ProSeries does not release the losses, Intuit is essentially taking the stand that they are not deductible.

After researching the issue, if you feel they should be deductible, you will need to manually enter it or override the software to allow the carryover expenses.

However, if you determine that the carryover expenses are NOT deductible, then the unused depreciation will not decrease the Basis of the property.