@AmeliesUncle wrote:
The method that TurboTax uses and the changing business percentage is what is causing that result. It has always done it that way, although I am unsure if it is doing it correctly or not.
Yes, the problem with the program is the way it's coded for rental use and personal use with respect to expenses and depreciation.
For allocating expenses, the program uses days of rental and personal use (the user inputs a number for each).
For depreciation, the program uses a percentage of business use and the user, likewise, enters that percentage.
There is a chance for error here because the program does not handle variations in business use from year to year very well and also the allocation for expenses can be inaccurate due to the programming for certain expenses. For example, if a repair is made during a rental period and is 100% a result of the rental use, the program still splits the cost of that repair between rental and personal use.
