vacation home rental loss?

[Maggie]

Ed has a vacation home rental. Used it 21 days personally, and rented it 31 days. Expenses are allocated to "rental" and "personal". The rental expenses exceed the rental income. My understanding is that rental expenses are allowed to the extent of rental income, with the balance of expenses carried over to future years. However, the computer program (intuit proseries) is calculating and allowing an 11,000 loss. What am I missing?

Thanks for all your help!

[spencer]

I'm not

familiar with your program, but TTB 7-7 says home mortgage interest is fully deductable as are real estate taxes, casualty and theft losses and direct rental expenses such as advertising, etc. Does that help?

[Maggie]

thanks

Thanks. The mistake that I had made was failing to enter the expenses as INDIRECT operating expenses. When I corrected those entries, everything worked out AND made sense. Thank you for your help.