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Schedule E shows a loss for a vacation home

UltraTax CS allows a loss on Schedule E for vacation homes. Here's why that happens and how to find the calculation.

The rental portion of the following direct rental expenses is fully deductible and not limited by the amount of income from a vacation home rental:

Mortgage interest

Real estate taxes

Advertising

Management fees

Commissions

Other direct rental expenses

All other kinds of expenses are treated as expenses related to operating or maintaining the rental unit. They're also limited by rental income.

Use the Vacation Home Worksheet to find out how any allowable loss was calculated.

Select the Asset
tab in the Rent and Royalty
folder.

Select Setup
, then Activity
.

Select Vacation Home Percentage

Enter the Number of days home rented
.

Select OK
to close any windows.