---

@TaxGuyBill wrote:

Does the software actually have a mechanism for you to say "don't allow this" (or "allow this") for the sold Vacation Home?  If not, the software doesn't really know what you are doing with it, which is why it doesn't do anything.

If the software was specifically set up to "allow" or "don't allow" the Vacation Home carryovers upon the sale, it agree, it would need to automatically adjust the unallowed depreciation.

---

The software does know how much is the "regular" depreciation, how much is the carryover depreciation from vacation home, and how much does the depreciation goes to the Schedule E.