Vacation home without renters

Forum|Forum|5 years ago
March 10, 2021
14 replies
42 views

My client has a vacation home that she used 90 days, but could not rent any days in 2020. When I input zero or leave blank at "days rented at fair rental value" it gives me an error even though all expenses are zeros except having amounts in "depreciation" and "depreciation carryover". How can I fix that error message ? Thanks

ProSeries Basic

This topic has been closed for replies.

T

TaxGuyBill

The personal residence was not rented, so it is not a rental property.

Schedule E is for rental properties, so the program won't let you have anything about a non-rental property on Schedule E.

So you need to delete it, and keep the information for if/when it becomes a rental property in the future.

C

ChiHoangAuthor

Level 6

Thank you for your quick response. The vacation home was rented in the past with depreciation and operating expenses carryover. If I delete schedule E this year, how do I capture all these information when it's rented next year.

dascpa

Level 11

There is a difference between "not rented" and "not available for rent". One means you removed the property as a rental and the other is treated still as a rental with no rental revenue. The 90 days of personal use also creates tax issues.

C

ChiHoangAuthor

Level 6

The property is available for rent but not rented. It's a vacation home, owners used 90 days in 2020 and zero day rented. It was rented in the prior years more than 14 days, so schedule E was prepared. Only this year 2020 was not rented and I input in schedule E 0 day rented at the fair rental value and 90 days of personal use, it gives me an error though I have no expenses except depreciation, operating expenses and depreciation carryover. Someone suggested that I delete schedule E for this year. But my concern is how I carry the "carryover" to next year when the property is rented. Thanks in advance for your advice.

dascpa

Level 11

I'll let you deal with the tax law of the issue but in ProSeries you can keep the Sch E, report -0- as rental revenue and no expenses. For the depreciation you can override the asset entry worksheet depreciation amounts to -0- . This will reflect "not in service". That way next year the Schedule E data is still all there.

Sign up

Login with SSO

Let's get you signed in

Login with SSO