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Entering vacation home income and expenses in ProConnect Tax

by Intuit Updated 3 months ago

This article will walk you through entering vacation home income and expenses for the Schedule E in the Individual module of ProConnect Tax.

Follow these steps to enter vacation home income and expenses:

  1. Go to the Input Return tab.
  2. From the left of the screen, select Income and choose Rental and Royalty Income (Sch E).
  3. Enter a Description of property.
  4. Enter the applicable address information for the property.
  5. For the Type of property field, select 3=Vacation/Short-Term Rental from the dropdown list.
  6. Enter the Number of days rented.
  7. From the top of thes screen, select Income Statement.
  8. Under the Income section, enter the Rents or royalties received.
  9. Under the Expenses section, enter any applicable expenses in the Direct or Indirect column.
    • See the section below these steps for information on direct and indirect expenses.
  10. Click the three dots at the top of the screen and select Personal Use of Property.
  11. Under Personal Use of Dwelling Unit (Including Vacation Home) section, complete the following fields:
    • Number of days personal use
      • You need to enter at least 15 personal use days for the program to treat the rental as a vacation home. This entry is also used to calculate the business use percentage of the property.
      • Business percentage = days rented / (days rented + days personal use)
    • Number of days owned (if optional method elected)
      • Enter the number of days owned if you need to apply a different business use percentage to mortgage interest and taxes than all other indirect expenses.

Direct and indirect expenses

  • Expenses entered in the Direct column will be taken in full and aren't subject to vacation home limitations. Enter only the portion of expenses directly related to the business use of the property here.
  • Expenses entered in the Indirect column are subject to the vacation home limitations. The nonbusiness portion of certain expenses (like mortgage interest and taxes) will flow to the Schedule A as an itemized deduction.
  • If you want to calculate depreciation for the activity, make sure that your entries on the Deductions > Depreciation screen are linked to Form 11= Schedule E Vacation Home.
ProConnect Tax

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