Looking for some tax savvy support for filing my expenses related to renting out parts of my house.
Here's the situation. I live in a house and have rented out rooms in my house. I also have an in-law cottage, aka an ADU, in the back of my property. I do not and cannot use the ADU because I rent it out exclusively to someone else. I've had to make some repairs that are exclusive to the ADU. I've also had to make some repairs to the rented rooms. I've also made repairs to parts of the house that everyone uses, such as the laundry machine room. In this last instance, these repairs would be ones that would benefit me because they apply to parts of the house that I also use, and thus are subject to the "personal use" percentage deduction that Turbotax does.
This is my second time filing taxes with my rental expenses included. I'm not really a landlord, just someone who shares their house with others and wants to make sure I file this properly with the IRS because I know the rent I receive is considered income. I know in the past I've had to calculate the percent of the house that is rented out. This is used to calculate which of my expenses are for "personal" use versus for the rental. I'm wondering if there's a way to file my taxes this year where the repairs I've made exclusive to the rented out parts can be fully included in the calculations for determining my net income. For instance, I had to make a very expensive repair that involved replacing a septic pump that services the ADU. This repair cost me $3 grand. This septic pump only serves the ADU, so it is 100% a cost that occurred for my rental and within my rental. When I input this particular expense into Turbotax, I don't want any of this cost to be attributed to my personal use because I actually don't benefit in any way from this repair. Similarly, for the room I rented out in my house, I had to do a major repair to the window inside of that room. It cost around $600 to repair the window inside the room, and I'd want it to be 100% attributed to the rental and thus fully deducted.
How can I make sure expenses like these that occurred 100% within the rented parts of the house, parts that I cannot and do not claim personal use, are fully deducted as a part of using the Turbotax software? Does that make sense? I understand when Turbotax takes some of my expenses and apportions a certain amount of those costs as for my "personal use" and therefore those expenses cannot be included in the calculations to determine my net income (or net loss). I'm trying to ensure that this doesn't happen for expenses that occurred 100% within the rental. Is there a way to do that? If so, what's the way I can do it?
Thanks for the support!
