TaxGuyBill
Level 15

@sjrcpa wrote:

Gain on sale does not free up excess vacation home deductions.


 

I think that is a "gray area".

Although I was taught that way (the excess vacation home expenses disappear), I think Dave from TaxProTalk leaned towards that they ARE deductible just like Passive Loss carryovers.  And it is hard to disagree with Dave.

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