Short Term Rental Data Entry

[aroun]

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?

[BobKamman]

Are you reporting the income and expenses on Schedule C?

[qbteachmt]

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?

[TaxGuyBill]

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.

[aroun]

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

[aroun]

It is in the wrong place. Thank you. 

[aroun]

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.

[TaxGuyBill]

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@aroun wrote:

It is a passive short term rental on the E

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

[aroun]

Correct, they do not materially participate and therefore the loss should be disallowed and carried forward. However, I have been unable to get that to occur. Lacerte thus far has been unable to help.. Again, thank you so much. 

[TaxGuyBill]

I'm a ProSeries user, so unfortunately I'm limited in what I can do to help you.

As a work-around, can you tell the program it was NOT a short-term rental, so it will treat it as Passive?

Double check that you didn't accidentally indicate they qualify a Real Estate Professional and Materially Participate in the property.  Double check that you entered no personal days.

[aroun]

Thank you so much for all of your help. No need to keep pushing at it. I did not have an entry for personal days nor did I indicate that they were a real estate professional. I will try to show it instead as a normal rental.