Get your taxes done using TurboTax

@jrad99 welcome to TurboTax. I've been using the program since 2003 and absolutely love it. However, it's not perfect and TurboTax doesn't claim it's perfect either. Every year they're constantly having to get updates and corrections out during tax filing season. Makes me glad I don't work for them and that I"m no longer a programmer. I can only imagine a programmer working for TurboTax probably gets grey hair before they're 40.

While for some as first time users of the program the learning curve can seem steep, it really doesn't take that long to get the hang of it. The main thing is patience. As a first time user of the program I do *NOT* recommend you use the online version of the TurboTax program. For a first time user, compared to the CD version of the program you may find the online version to be extremely frustrating and very user unfriendly. Whereas the Desktop version is much more user friendly, easier to navigate and easier to deal with user problems and issues. Much, *MUCH* easier. To this day I still use the CD version because I find the online version  lacking in features and capabilities that I use and prefer, not to mention the online version is *S*L*O*W*E*R* *T*H*A*N* *M*O*L*A*S*S*A*S rolling up hill. So that's another reason I recommend a first time user of the TurboTax program use the CD version that they can purchase and physically install on their Windows or MAC computer, for at least their first year using the program. You can switch to the online version in later years if you so desire.

Now I assume your 2019 taxes have already been filed and you are in possession of a paper copy of that return. If so, then I think it would be a good idea to purchase and Install TurboTax 2019 on your computer, and use that program to duplicate your already filed 2019 return. Not only will this make using TurboTax 2020 to file your taxes next year easier, it will also be faster for you. The program will "import" data from the previous year's tax file if that tax file is on your computer and availalbe to the program, thus saving your hours of time entering date a 2nd time, that you've already entered in a prior year.

With the CD version there are three flavors you can use and any one of them includes the SCH E needed to report rental income and expenses. The only basic difference between each flavor is the level of in-program help that is available to you. First, there's TurboTax Deluxe. That's followed by the Premier flavor which cost a little bit more. Finally, there's the TurboTax Home & Business flavor which cost the most. I would suggest you purhcase the CD version of TurboTax Premier and install it.

you can purchase the CD version of whatever flavor you deisre and install it "right now" if you desire, at https://turbotax.intuit.com/personal-taxes/cd-download/  During the order process I would suggest that you select to download the installation file so you can install the program without having to wait for the CD to arrive in the mail. I also suggest you go ahead and order the CD too, so you'll have it should you need to install it again in the future, or need to install it on a new computer when the time comes to replace the one you have right now.

You'll find you'll learn a lot about tax law too, particularly as it relates to rental property. But it doesn't happen over night. I've been a landlord with 3 rentals of my own for close to 30 years now, and it seems that every single year I learn something new. To get you started, the below information is provided as a rough start to the learning process. As always, if you have questions then by all means please ask. The only dumb question is the one you didn't ask.

Rental Property Dates & Numbers That Matter.

Date of Conversion - If this was your primary residence or 2^nd home before, then this date is the day AFTER you moved out.
In Service Date - This is the date a renter "could" have moved in. Usually, this date is the day you put the FOR RENT sign in the front yard.
Number of days Rented - the day count for this starts from the first day a renter "could" have moved in. That should be your "in service" date if you were asked for that. Vacant periods between renters count also PROVIDED you did not live in the house for one single day during said period of vacancy.
Days of Personal Use - This number will be a big fat ZERO. Read the screen. It's asking for the number of days you lived in the property AFTER you converted it to a rental. I seriously doubt (though it is possible) that you lived in the house (or space, if renting a part of your home) as your primary residence or 2nd home, after you converted it to a rental.
Business Use Percentage. 100%. I'll put that in words so there's no doubt I didn't make a typo here. One Hundred Percent. After you converted this property or space to rental use, it was one hundred percent business use. What you used it for prior to the date of conversion doesn't count.

RENTAL PROPERTY ASSETS, MAINTENANCE/CLEANING/REPAIRS DEFINED

Property Improvement.

Property improvements are expenses you incur that “better” the property. Basically, they retain or add value to the property. Expenses for this are entered in the Assets/Depreciation section and depreciated over time. Property improvements can be done at any time after your initial purchase of the property. It does not matter if it was your residence or a rental at the time of the improvement. It still adds value to the property.

To be classified as a property improvement, two criteria must be met:

1) The improvement must become "a material part of" the property. For example, remodeling the bathroom, new cabinets or appliances in the kitchen. New carpet. Replacing that old Central Air unit.

2) The improvement must retain or add "real" value to the property. In other words, when the property is appraised by a qualified, certified, licensed property appraiser, he will appraise it at a higher value, than he would have without the improvements.

There are rules that allow you to just flat-out expense and deduct some property improvements, if the total cost of the improvement was less than $2,500. It’s referred to as “safe harbor di-minimis” But depending on the specific situation, this may or may not be beneficial. Just be aware that not every property improvement that cost less than $2,500 qualifies for this. If this interest you, the rules can get complex. So a good place to start reading is on the IRS website at https://www.irs.gov/businesses/small-businesses-self-employed/tangible-property-final-regulations. The stuff on di-minimis starts about one page down.

Cleaning & Maintenance

Those expenses incurred to maintain the rental property and it's assets in the useable condition the property and/or asset was designed and intended for. Routine cleaning and maintenance expenses are only deductible if they are incurred while the property is classified as a rental. Cleaning and maintenance expenses incurred in the process of preparing the property for rent are not deductible.

Repair

Those expenses incurred to return the property or it's assets to the same useable condition they were in, prior to the event that caused the property or asset to be unusable. Repair expenses incurred are only deductible if incurred while the property is classified as a rental. Repair costs incurred in the process of preparing the property for rent are not deductible.

Additional clarifications: Painting a room does not qualify as a property improvement. While the paint does become “a material part of” the property, from the perspective of a property appraiser, it doesn’t add “real value” to the property.

However, when you do something like convert the garage into a 3^rd bedroom for example, making a  2 bedroom house into a 3 bedroom house adds “real value”. Of course, when you convert the garage to a bedroom, you’re going to paint it. But you will include the cost of painting as a part of the property improvement – not an expense separate from it.