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Level 2
March 28, 2024

58467

  • March 28, 2024
  • 1 reply
  • 4 views
The following diagnostic is generating: Form Sch E-1 #1: An Override amount has been entered for disallowed vacation home expenses. This override results in negative amount for Other Expenses on Schedule E-1. Massachusetts does not allow negative expenses Please use indirect expenses column to allocate expenses for vacation homes. ref#58467.

    1 reply

    Melissa FAuthor
    Level 2
    March 28, 2024

    There is nothing entered in the override for disallowed vacation home expenses.

    if I do override the disallowed vacation home expenses to eliminate the negative other expenses, the Sch E shows a loss. Loss is no allowed for a Vacation Home.

    I have also tried reducing the indirect expenses to eliminate the negative other expenses but disallowed vacation home expenses just decrease too.

    Help with would be appreciated.