It depends. The intent was to use this property for a residential rental activity. The question is whether you intend to pursue this in 2024.
For 2023, if the room rental was at fair market value, then you can use square feet to determine the percentage of business use. You would uses this same percentage on expenses. My advice would be to enter these numbers yourself without choosing TurboTax to do that for you. You may have expenses that are specifically for the room and you don't want those limited if applicable.
If you decide this was a 'not for profit' rental for 2023, then you can use the following steps to enter the income, however the expenses will not be allowed.
- Wages and Income
- Scroll to Less Common Income; Click Show more (if start isn’t displayed)
- Click Start across from Miscellaneous Income, 1099-A, 1099-C
- At the “Other Taxable Income” screen, enter your description – Not for Profit Rental and then amount of income you received.
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