Vacation Home Depreciation

Forum|Forum|6 years ago
May 1, 2020
11 replies
49 views

The program will not take a deduction for Vacation Home Depreciation carryover from prior years even though I am showing a complete disposition of the property. Is there a prompt for this that I am missing? If this is not deductible why does the program carry it over? Currently the program shows the correct amount on the Schedule E, but takes no deduction, leaving the full amount as carryover. There is no carryover to the 2020 smart worksheet.

ProSeries Professional

This topic has been closed for replies.

Just-Lisa-Now-

Intuit Community Champion

Youve checked Box H for complete disposition?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

M

Mikel5Author

Level 3

Yes, thanks.

T

TaxGuyBill

When you say "Vacation Home", you mean a home that is used for BOTH personal use and rental use, right?

Although Passive Loss carryovers are fully deductible in the year of sale, I don't think there is any clear guidance if Vacation Home carryovers are deductible. Because ProSeries does not release the losses, Intuit is essentially taking the stand that they are not deductible.

After researching the issue, if you feel they should be deductible, you will need to manually enter it or override the software to allow the carryover expenses.

However, if you determine that the carryover expenses are NOT deductible, then the unused depreciation will not decrease the Basis of the property.

M

Mikel5Author

Level 3

I assume this topic has come up before since you are aware that Proseries doesn't give the deduction.

It doesn't make sense to me that property basis should be reduced by depreciation that can't be

deducted. I guess I'll continue to research this. Thanks for your help.

T

TaxGuyBill

@Mikel5 wrote:
It doesn't make sense to me that property basis should be reduced by depreciation that can't be deducted.

Correct. As I said above, IF you determine the expenses can't be deducted, the depreciation WON'T reduce Basis.

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