58467

The following diagnostic is generating: Form Sch E-1 #1: An Override amount has been entered for disallowed vacation home expenses. This override results in negative amount for Other Expenses on Schedule E-1. Massachusetts does not allow negative expenses Please use indirect expenses column to allocate expenses for vacation homes. ref#58467.

Melissa F · ‎03-28-2024

There is nothing entered in the override for disallowed vacation home expenses.

if I do override the disallowed vacation home expenses to eliminate the negative other expenses, the Sch E shows a loss. Loss is no allowed for a Vacation Home.

I have also tried reducing the indirect expenses to eliminate the negative other expenses but disallowed vacation home expenses just decrease too.

Help with would be appreciated.