Vacation Rentals - Other Passive Exceptions

Forum|Forum|6 years ago
July 7, 2020
7 replies
44 views

Scenario :

Client with a Vacation/Rental property allocated 299 Rental days / 66 days personal (~82% rental use)

The total rental loss is $116K - Proseries is classifying as "other passive exceptions" and allowing ~$32K current year deductible rental loss on Schedule E and Schedule 1. Shouldn't this be "0"?

Shouldn't the full $116 rental loss be suspended and show up on 8582?

Thanks.

ProSeries Professional

This topic has been closed for replies.

T

TaxGuyBill

First thing I need to ask, HOW is there a loss of $116,000?

And just check, did this property go back-and-forth between personal and rental use? Or was it 100% personal then converted to 100% rental (or vice versa)?

P

pm-zzAuthor

Level 3

Its a 2.5 million rental property, lots of maintenance, huge mortgage etc while rental income received only $17K last year.

T

TaxGuyBill

299 rental days and they only received $17,000 for that type of property? Is it being rented at Fair Market Value? Something seems fishy to have come up with a loss of $116,000.

And just to confirm, that supposed $116,000 loss is only from this one year?

And please confirm my other question about it being back-and-forth between rental and personal use, versus just being converted to 100% rental or personal use.

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