Rental Property In TurboTax. How do I file if I live there as well?
Hi, this year I bought a house and rent the two extra rooms out. I’m wondering how I file this specifically with TurboTax? Do I claim it as a rental property or as an investment? Publication 527 says to claim portions of the expenses on Schedule E, but I don’t know how this corresponds to what TurboTax wants to do. Thanks!
You indicate that you rent part of your home. If you charged fair rental value it flows through schedule E.
if you didn’t charge fair rental value, the income will appear on line 21 and the expenses will show up on schedule A.
I don’t know trubotax but the basic idea is that you figure the total square footage of the house and the square footage of the rental area and get a percent. For example 30% rental. then you claim 30% of the mortage and property tax and insurance as a business expense 70% percent on your schedule A.
If you put a new roof on your house you can claim 30%. You take 30% of a new roof and 30% of the depreciation.
If you had repairs for the rental are you could take 100% of them.
It all goes on a Schedule E. If you sell the house in the future you should go a professional tax preparer who has experience with sale of rental property
Indicate that you rent part of your house to turbotax. Turbotax should automatically pro-rate the mortgage interest/property tax into the rental portion and your own living quarters portion.