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Investors & landlords
The first seven months (or 7/12) of rental income and expenses should be reported on your mother's final tax return. The remaining five months (or 5/12) should be reported on your tax return. You'll need to calculate the splits yourself. This includes property taxes and mortgage interest.
Was the entire property rented after your mother passed? Or was only half rented? TurboTax will offer you options when you create the rental property. One is for a multi-family property, which describes your situation. Answer the remaining questions for the period you owned the property, with regard to ownership, rental days, etc. Look for blue "Learn More" links on the entry screens that provide specific help throughout the program.
Additional Information:
- IRS Pub 527 "Residential Rental Property"
- Where do I enter income and expenses from a rental property?
- What kinds of rental property expenses can I deduct?
- How do I handle capital improvements and depreciation for my rental?
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