If I rent space in the house I own and live in, how do I categorize this type of rent?

4romrell · ‎June 4, 2019

I own my home and I am renting space to two other persons. They have their own bedroom, but we share the common areas of the house.. How do I input this rental income into turbo tax Premier? How do I categorize this type of rental income? What schedule should I be using? What expenses can I input and how? I received a 1099-misc form from the organization that pays the rent. Thank you. Darla

DanielV01 · ‎June 4, 2019

Yes, you can enter this into TurboTax. You will use the Rental Income section, which will go on to Schedule E which is the form to report rental income. You will need to state that you rented out part of the home. Then, you will need to determine the percentage of the home you rent out. Here's an FAQ with information on where in TurboTax to enter this: https://ttlc.intuit.com/replies/3288530

After that, you will enter in all of the applicable expenses, including utilities. TurboTax will calculate the amount of the expenses (based on rental percentage), that you can use. Any portion of mortgage interest and real estate taxes that you cannot claim on the rental (basically your personal-use portion) will be claimed as itemized deductions.

The key screen is to make sure that you select you rented part of your home. The following screenshot shows what to look for following the instructions in the FAQ above:

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If I rent space in the house I own and live in, how do I categorize this type of rent?

Investors & landlords