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 leasing property or as an investment? Periodical 527 says to claim parts 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 honest leasing value it flows through schedule E.
if you didn’t charge honest leasing 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 thought is that you figure the total square footage of the house and the square footage of the leasing area and get a percent. For example 30% leasing. then you claim 30% of the mortage and property tax and insurance as a business deprivation 70% percent on your schedule A.
If you place 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 leasing are you may possibly 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 leasing property
Indicate that you rent part of your house to turbotax. Turbotax should automatically pro-rate the mortgage appeal/property tax into the leasing part and your own living quarters part.