In the rental property section, Turbo Tax asks you questions about your property. Since you are renting out a unit in a multi-unit property, you have the option of entering all of the expenses such as mortgage interest and property taxes in the rental section and then Turbo Tax will allocate the appropriate amount of each expense as an itemized deduction. You wont need to enter an amount for these expenses in the itemized deductions section. This would be the best option for your situation.
To review your entries in the rental property section of Turbo Tax:
- log in to your Turbo Tax account
- click on "take me to my return"
- click on the "federal taxes" tab
- click on "wages and income"
- scroll down to "rental properties and royalties" and click on "edit"
- when you reach the "summary" rental property page, click on "update" next to "property profile"
- navigate through the screens until you get to the screen that says, "do any of these situations apply to you?"
- there is a selection that says, "rent out a unit in a multi- unit property". This should be check marked if it fits your situation.
- continue navigating through the screens, until you get to the screen that says, "let us calculate your expenses deductions for you". There are two options on this screen:
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answer yes if you want to enter your total expenses and then Turbo Tax will allocate the expenses between rental expenses and itemized deductions. You wont need to enter any amount for these expenses in the itemized deductions section.
