Sch E worksheet is reducing deductions

[ajp]

Client has a rental. It is a single family home, NOT a vacation home. It was rented all year. However, the worksheet is reducing deductions -- putting some of them under "vacation home loss limitations." I have looked that worksheet up and down. I don't have vacation home checked. I don't say owner occupied. I say it was rented all year with zero personal days. 

What else should I look for or is this some random mid season bug?

Thanks!

[ajp]

Adding that the owner is materially and actively participating -- no question there. Those boxes are checked.

[rbynaker · Accepted solution]

Could there be a carryover of prior vacation home expenses?  I don't remember how that works in ProSeries.

I'd say delete the Sch E Wks and start over but you don't want to lose the asset history so maybe start a new one with the same inputs and see if PS is consistently weird or if there's just some corrupt data somewhere.

[ajp]

That's what it is! Thank you. 

She lived in the house for part of the first year that it became a rental. 

[TaxGuyBill]

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@ajp wrote:

That's what it is! Thank you. 

She lived in the house for part of the first year that it became a rental. 

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Take a step back.  Was she using the house only BEFORE it became a rental, and NOT after it became a rental?  If so, there should not be "vacation home" losses, and you may need to amend the prior tax return (if there was NO person use AFTER it was converted to a rental, the "personal days" should be zero; you would need to MANUALLY prorate the expenses for that year for the rental period).