I am really having issues with this. I specially upgraded to TurboTax Premier just for this. I live in California. I have a second home in Idaho that my son, his wife and my daughter live in and pay below fair market rent. I had my taxes done by an accountant last year and from what I can tell, he prepared them as if the rent charged was fair market rent with depreciation of the asset etc.... This seems to be the only way Turbo Tax Premier allow me to do it. When entering Rental Income Schedule E, it will delete the rental once I enter the amount of days the home was at fair market rent (which is 0). It then tells me to enter the rent I did receive under Other Reportable Income and Expenses in Deductions and Credits. I enter the rent income (which substantially increases my tax liability). But there is no place that I can find to put the Expenses.
The other option on this form from the IRS article states: Report your not-for-profit rental income on Schedule 1 (Form 1040), line 8. If you itemize your deductions, include your mortgage interest and mortgage insurance premiums (if you use the property as your main home or second home), real estate taxes, and casualty losses from your not-for-profit rental activity when figuring the amount you can deduct on Schedule A.
I don't see how to do this within the software and a couple of you are saying this is incorrect.
Help.
