Question

Short-term rental - Enter Nondeductible expenses from prior years

Forum|Forum|4 years ago
April 1, 2022
1 reply
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In Turbotax it asks you to enter amounts you weren't able to deduct in prior years if you used your rental for personal and rental purposes. Should I enter the expense amounts that were allocated for personal use and hence were not deducted in prior years? Example: Utility expense $2778 entered, $2626 calculated and reported on sched E, and $152 allocated to personal use.

If not, what are they asking for and where would I find the amounts?

Categories for entry are:

Operating expenses

Depreciation expenses

AMT Operating expenses

AMT Depreciation expenses

TurboTax Home & Biz Windows

A

AmeliesUncle

No.

It would be on a worksheet of some sort, not really on a tax form.

For your rental, look at Schedule E. Did you have a profit, or did you have a loss in prior years? If you had a profit, then there would not be any carryover from that year. Actually, if your last year's return reports a profit, that means that any prior losses would have been used up, so there would not be any "vacation home" carryovers.

C

CGWLAuthor

Thank you for the quick reply. So the expenses allocated to personal use is never deductible, correct? Only the losses from previous years?

A

AmeliesUncle

Correct, personal expenses are never deductible.

Yes, only the rental losses from previous years. There are two types of rental losses, "passive" losses and "vacation home" losses, but the one you referenced are the "vacation home" losses (due to your personal use, the rental expenses can't allow you a deductible loss).