Vacation Home Rental Loss Limitation Carryforward

Forum|Forum|2 years ago
February 7, 2024
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This is my first year with a Vacation Home Rental on Schedule E. I see on a worksheet for Sch E that TurboTax is limiting my depreciation due to the Vacation Home Rental Loss Limitation. I'm wondering where I can see the loss limitation carryforward. In IRS Pub 527, there is a worksheet 5-1 that shows how to calculate the carryforward, but I'm not seeing the carryforward in TurboTax. I just want to make sure that it's tracked going into next year. Thanks!

Rental Property

Best answer by AmeliesUncle

Yes, I can only tell you that TurboTax does not include Worksheet 5.1 so you will have to keep track of any carryforwards yourself, outside of TurboTax.

There is a screen in the program where you can enter nondeductible expenses from prior years.

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I'm pretty sure that TurboTax DOES keep track of the Vacation Home Carryovers (ProSeries does).

If you have the CD/downloaded version, you can go in the "Forms" to see the Schedule E Wks. Below the section that shows the income and expenses are a bazilliion other things. If you scroll about 75% down on the Schedule E Wks, I think you'll find the "Carryforward to 2024 Smart Worksheet".

Anonymous_

Employee

You may very well not have a carryforward.

Check the worksheet in the publication carefully. Note the figures on Lines 3, 5 and 6d, and that you would enter the smaller of Line 5 or Line 6d on Line 6e. If Line 5 is 0, then you would have no carryforward.

louisb917Author

Agree that line 6e is zero, however keep going to Part III. Line 7b says subtract 6e from 6d, which would not be zero, and this is the excess casualty and theft losses and depreciation to be carried over to next year. I do believe there should be a carryforward.