Hi! Yes, to clarify, I own the home. What I meant about being a landlord is that I'm not a full out-and-out landlord because I also live in the home that I'm renting out parts. I'm aware that I can deduct expenses and the Turbotax software does prepare a Schedule E. That's what I've been doing. What's tricky about my situation is that I have parts of my property that can be considered exclusively a rental property (the ADU) and then I've rented out a room in my own house where I share space with the tenant.
My question is around the fact that in the past when I'm doing a Schedule E, Turbotax has asked me what percent of my house I rent out since I'm a combined use case. I took the property square footage, and the ADU is roughly 30% of my total property square footage. But that would mean that the software assumes that for the $3K repair I did for the ADU, that 70% of that repair is not eligible for deduction. Even though the ADU is 100% for the tenant and I don't use it whatsoever. I'm trying to figure out how to answer the Turbotax questions differently so that this property square footage calcuation isn't applied to expenses for the ADU.
How do I make sure that these expenses for the ADU are fully deducted? It doesn't seem like I'm selecting the right options in answering the Turbotax software to set it up for where the ADU expenses can 100% be applied to it. Does that make sense?
