Investors & landlords

It is still a rental property as long as it was available for rent during 2015 (the fact that it wasn't rented will not make it a personal use second home). You will just put "0" for question on "the days rented at FMV" if only available to rent but not rented. Please note that the days that you worked on the home as not considered personal use days. Your capital improvements will increase the basis in your property. (See additional information below if property was not available for rental for all of 2015.)

You will include all rental expenses under the rental section.

Please refer to this IRS link for more information on rental income and expenses:

https://www.irs.gov/publications/p527/ch01.html#en_US_2015_publink1000218984

To enter for rental income and expenses in TurboTax Online or Desktop, please follow these steps:

1. Once you are in your tax return, click on the “Federal Taxes” tab ("Business" tab in TurboTax Home & Business)
2. Next click on “Wages & Income” ("Business Income and Expense" in TurboTax Home & Business)
3. Next click on “I’ll choose what I work on” (Jump to full list)
4. Scroll down the screen until to come to the section “Rental Properties and Royalties”
5. Choose “Rental Properties and Royalties” and select “start’ (or “update” is you have already worked on this section)
6. If your rental property is listed, you will need to select "edit" to access this information. Otherwise enter your rental property information. (If you are entering your rental information for the first time, you will need to add the rental house as an asset. You will also enter your capital improvements as a separate asset)
7. Is This a Rental Property or Royalty? - choose rental and put rental information and address
8. What Type of Rental is This? - choose rental type (ie: Single family (home or unit where a single family lives))
9. Do Any of These Situations Apply to This Property? - select any that apply
10. Was This Property Rented for All of 2015? - based on your circumstances you will say no and but "0" for number of days rented at FMV. If you did not use the house for any personal use, put "0" for personal use days also.
11. Property Ownership - select your ownership percentage
12. Indicate if you Actively Participate - yes or no (If yes, this allows some of the passive losses to be used against passive income)
13. Did You Pay Anyone $600 or More for Work Related to This Property? - yes or no
14. Is Your Property in Any of These Designated Areas? - Usually "none of the above"
15. Review Your Rental Property Rental Summary (screenshot #1)
1. You select expenses to enter your mortgage interest and real estate taxes
2. You will select assets to include your capital improvements.

You will report your rental income and expense on Schedule E. If your expenses exceed your income, these expenses may be suspected due to the passive activity rules. However, according to the IRS, if your rental expenses exceed rental income you may report a loss up to $25,000 on your tax return, limited for adjusted gross incomes above $100,000.

TurboTax will help guide you on entering this information. Make sure that you pay close attention to the questions regarding at-risk issues and limitations.

For more information on rental income and expenses, including passive activity loss limits, refer to Publication 527 and Publication 925, Passive Activity and At-Risk Rules.

Please note if the property was not available for rent for all of 2015, you will not enter any expenses under the rental section. You would be able to get itemized deductions for mortgage interest and real estate taxes under Schedule A.

In this scenario, you would enter your mortgage interest and real estate taxes under deductions and credits:

To enter your Property Taxes in TurboTax Online or Desktop, please follow these steps:

1. Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
2. Next click on “Deductions and credits”
3. Next click on "jump to full list" or “I’ll choose what I work on”
4. Scroll down the screen until to come to the section “Your Home”
5. Choose "show more", then Property Taxes and follow the onscreen instructions
6. Enter the real estate taxes under "other property"

To enter your Mortgage Interest in TurboTax Online or Desktop, please follow these steps:

1. Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
2. Next click on “Deductions and credits”
3. Next click on "jump to full list" or “I’ll choose what I work on”
4. Scroll down the screen until to come to the section “Your Home”
5. Choose "show more", then Mortgage Interest and Refinancing and follow the onscreen instructions. You will need to enter the Mortgage lender's name and interest amount.