Then "EVERYTHING" concerning the rental is reported on SCH E as a part of your personal 1040 tax return. First a few warnings since I note you're using the Online version of TurboTax Premier.
- DO NOT register or pay your online TurboTax fees until you are *COMPLETELY* finished with your taxes. Once you pay, you flat out can not elect the option to "start over".
- As a first time landlord, I have no doubt that you *will* be starting over more than once. It's how you learn how this program works. 99% of what I know about the program is what *not* to do, and I didn't learn it, by not doing it. Same will hold true for you.
- When you get to a point where it's time to "start over", on your left select Options, then Tools, then the "clear and start over" option. Note that when you do this, it will clear your 2018 tax return *ENTIRELY* and you will be starting over from scratch. Expect this, and expect to need to do this more than once. You don't learn this stuff through osmosis.
As you work through the rental, you'll find that there is a specific box in the rental expenses section for "management fees". Be careful here. If your property manager issues you a 1099-MISC with what they paid you reported in box 1 of that 1099-MISC, if the amount in that box does "NOT" include the management fees they withheld from the rent before paying the remaining rent to you, then you do "NOT" have any management fees to claim. Gotta be careful that you don't double-dip here on the deductible rental expenses.
Now, below in the answer box is information that I already know you will "NEED". It provides clarity where the program does not. But one thing I do want to point out when working this rental property through for the very first time is this:
PERFECTION IS NOT AN OPTION! IT"S AN ABSOLUTE MUST!
Getting even the tiniest thing wrong in that first year has a very, very high potential of becoming exponentially worse as the years pass. Then when you catch the error a few years down the road (if the IRS doesn't catch it first) the cost of fixing that error will be *expensive*. So if you have any questions, please ASK!. The only stupid question, is the one you didn't ask. Remember, since this is your first time dealing with a rental property, perfection is NOT an option.
