Level 3

Short Term Rental Data Entry

Forum|Forum|3 years ago
August 26, 2022
3 replies
30 views

A short term rental (when the average rental period is less than 7 days) have a limitation on losses. I am not getting the restriction on the losses nor the carryforward when I input the rental as a short term and no personal use. Would anyone be able to give me guidance on how this is to be input?

This topic has been closed for replies.

BobKamman

Level 15

Are you reporting the income and expenses on Schedule C?

A

arounAuthor

Level 3

No, it is on a Schedule E and a passive activity. Thank you!

qbteachmt

Level 15

This is posted in the Software Developer Group forum. Are you writing custom code for integration to Lacerte? Or, is this simply lost and in the wrong forum?

Don't yell at us; we're volunteers

A

arounAuthor

Level 3

It is in the wrong place. Thank you.

T

TaxGuyBill

Level 15

As was noted above, if you are just using Lacerte to prepare tax returns, see the link below for a much better place to post questions.

https://proconnect.intuit.com/community/lacerte-tax/discussion/03/302

As for your tax question, it might not be passive, and therefore the losses are allowed and not carried over.

An activity is passive if (a) it is defined as a "rental" for passive loss purposes or (b) it is something that is NOT Materially Participated in.

Because it is short term rental, that avoids the automatic "rental" that makes things passive. Therefore, if your client Materially Participated in the activity, it would not be passive and therefore the losses are allowed.

A

arounAuthor

Level 3

Thank you so much. It is a passive short term rental on the E and the loss is still appearing as if it were not a passive activity.

T

TaxGuyBill

Level 15

@aroun wrote:

It is a passive short term rental on the E

Are you saying they do NOT "Materially Participate" in it?

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