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.
  1. Select the
    Asset
    tab in the
    Rent and Royalty
    folder.
  2. Select
    Setup
    , then
    Activity
    .
  3. Select
    Vacation Home Percentage
  4. Enter the
    Number of days home rented
    .
  5. Select
    OK
    to close any windows.

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