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February 16, 2025
Question

depreciation for deduction is limited, and no loss is carried forward

  • February 16, 2025
  • 1 reply
  • 0 views

this is the first year to convert my primary home to rental house. the total rental income is $36000, expense is $ 25601. TT only allow depreciation of $36000-$25601= $10399. while in fact the depreciation is $ 13795. therefore no loss is carried forward for the next year. 

it is passive loss, and I think it should be carried over. 

    1 reply

    February 16, 2025

    Was it converted to 100% rental, with no personal use after it was converted to a rental?

     

    If so, enter ZERO personal days of use.  And you will need to manually prorate any expenses based on the rental period.