Level 4

Question

How do i get rid of depreciation on the Sch E for a rental that wasn't rented out any time during 2020

Forum|Forum|5 years ago
April 24, 2021
5 replies
31 views

Client has been renting out a casita via AirBnB in previous years, due to Covid they did not rent it out at all during 2020. Depreciation is showing up on the Sch E, however I undertand depreciation loss cannot be taken. How do I get rid of it so there is no loss on the Sch E?

ProSeries Basic

This topic has been closed for replies.

clr600

Level 7

Was it available for rent are they not selling did they have expenses during 2020 if all are yes it is still a rental and all deductions are allowed

Y

Young-TPAuthor

Level 4

When I checked it says all expenses are deductible EXCEPT for depreciation, which is where my problem arose.

BobKamman

Level 15

I haven't tried this, but what happens if you enter -0- for rental days and 366 for personal use days on the Schedule E worksheet? At least it would give the computer something to think about.

clr600

Level 7

Did they use it all year personally

Y

Young-TPAuthor

Level 4

Yes. It was an AirBnB but due to covid wasn't rented out all year.

D

DTNY07

Level 6

Used to be able to override the amount on Schedule E and change it to zero. But, the last few years, then you can't e-file if you override it.

But you can override it on each fixed asset. which if there are only a few assets, is not a big deal. Can still e-file

dkh

Level 15

I would override the Asset Entry worksheet

R

R B Tax

Level 3

I have a similiar situation, where property has been vacant for entire year and client doesn't have the monies to get it fixed up yet. It's a condo that needs a lot of work. They have been continuing to pay the condo fees and taxes, but that's it. Pub 527 reads that it's not deductible since it's not up for rent and can't be at the moment. I went into asset entry screen and made business % 10% and that suspended the depreciation. Not sure if that's the best way to handle though.

Ray Burts, EA

R B Tax

T

TaxGuyBill

Level 15

Was the property used for personal purposes?

If not, you SHOULD be able to enter zero days and not have a problem. If it gives an error, you can just ignore it (and turn off error-checking when e-filing) or just enter 15 days because it does not affect anything.

If there WAS personal use, there probably shouldn't be a Schedule E because it was not a rental.

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