Residential rental income and expenses are reported on Schedule E of your individual income tax return. In TurboTax, this is done in the Wages & Income section. Once you indicate you have rental income, you will be guided through questions about income and expenses related to the rental. Any expenses directly associated with the space you are getting income from can be deducted. Anything indirectly associated, can be allocated.
Example: If you rent out a room in your primary residence, only the portion of your insurance, utilities, or HOA fees that is allocable to the rental space and time period is deductible. You would typically allocate based on the square footage of the rented space compared to the total square footage of your home.
This is a great resource.
You can also reference page 23 and 24 of this IRS publication.
Hope this helps!
Cindy
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