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How do i get rid of depreciation on the Sch E for a rental that wasn't rented out any time during 2020

Young-TP
Level 3

Client has been renting out a casita via AirBnB in previous years, due to Covid they did not rent it out at all during 2020. Depreciation is showing up on the Sch E, however I undertand depreciation loss cannot be taken. How do I get rid of it so there is no loss on the Sch E?

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9 Replies 9
clr600
Level 7

Was it available for rent are they not selling did they have expenses during 2020 if all are yes it is still a rental and all deductions are allowed

Young-TP
Level 3

When I checked it says all expenses are deductible EXCEPT for depreciation, which is where my problem arose. 

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BobKamman
Level 14

I haven't tried this, but what happens if you enter -0- for rental days and 366 for personal use days on the Schedule E worksheet?  At least it would give the computer something to think about.  

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clr600
Level 7

Did they use it all year personally

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Young-TP
Level 3

Yes. It was an AirBnB but due to covid wasn't rented out all year.

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Young-TP
Level 3

I tried that first thing, thought it would work, but it says if it was rented less than 15 days that no Sch E should be used. IDK

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DTNY07
Level 5

Used to be able to override the amount on Schedule E and change it to zero.  But, the last few years, then you can't e-file if you override it.  

But you can override it on each fixed asset.  which if there are only a few assets, is not a big deal.  Can still e-file

dkh
Level 11

I would override the Asset Entry worksheet 

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TaxGuyBill
Level 15

Was the property used for personal purposes?

If not, you SHOULD be able to enter zero days and not have a problem.  If it gives an error, you can just ignore it (and turn off error-checking when e-filing) or just enter 15 days because it does not affect anything.

If there WAS personal use, there probably shouldn't be a Schedule E because it was not a rental.

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