Screen Rent-3 - Rent and Royalty Property - Vacation Home (1040)

Vacation Home, Personal Use Information

All expenses are allocated based on the number of days rented, divided by the total number of days the property was used. If you enter
X
here, the mortgage interest and taxes are allocated using the number of days the home was rented, divided by the number of days in the year the taxpayer owned the home. This allocates less interest and taxes to Schedule E and enables a potentially greater deduction for other expenses. UltraTax CS assumes the taxpayer owned the home for a full year. Enter the number of days in
Number of days home owned
, if other than a full year.
Enter the number of days the vacation home was used personally along with the number of days the home was rented. The deductible expenses calculate using the Vacation Home Worksheet. When using the asset module, the days in asset entry transfer automatically to these fields.To enter the days in the asset module, select
Vacation Home Percentage
in the
Setup
, then
Activity
window located in the asset listing for this activity.
To use the tax court method when less than a full year, enter the number of days the taxpayer owned the home during the year. You can leave this field blank if the home was owned for a full year.
Enter a percentage to allocate expenses to Schedule E. This information overrides the calculated percentage.
Enter the total amount after the casualty limitations have been applied. See IRS Publication 527 Residential Rental Property for computation using Form 4684 with casualty. The vacation/personal use percentage on the Vacation Home Worksheet is applied to this amount and reported on Schedule E, Other expenses.
Advertising, commissions, and management fees on the
Rent
screen are treated as direct rental expenses on the Vacation Home Worksheet; all other expenses on the
Rent
screen are treated as operating or maintenance expenses. User the statement for this field to enter other expenses to treat as fully deductible rental expenses. Don't enter the same expense on the
Rent
screen. Expenses in this statement appear on Schedule E, Other expenses.
Enter the amount of qualified mortgage interest and qualified mortgage insurance premiums that wouldn't be deductible on Schedule A because of the limits imposed upon them. See IRS Publication 527 - Residential Rental Property for more details. The amount will appear on Schedule E, Other expenses.
Enter the total amount of the casualty and theft loss before limitations are applied. The rental portion of the excess casualty and theft calculates using this amount and the amount in the Rental portion of casualty and theft losses field. A nonsubmittable statement prints to support the calculation of this amount. The calculated amount appears on Schedule E, Other expenses.
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