To report the rental of 1/3 of your home, you will:
Go into your TurboTax return. Not sure you're in there? Click on the orange Take me to my return button.
- Search for rentals and then click the "Jump to" link in the search result.
- Answer Yes to the question Did you have any rental or royalty income and expenses?
- Follow the on-screen instructions as you proceed through the rental and royalties section.
- We'll first ask you to enter general information about your rental (description, address, ownership percentage, etc.)
- Eventually, you'll come to the Rental Summary screen which is where you enter your:
- Rental income
- Rental expenses
- Capital assets and depreciation
- Vehicle expenses
Tip: Rent is considered income in the year you received it, not the year it applies to. This means that a rent payment for the month of January 2017 collected in December 2016 is reported on your 2016 return.
2nd Part of your question
For most bills you would allocate 1/3 of them to the rental. These would bills like utilities, property taxes, insurance, etc. There may be some other bills where for example you had to repair or replace something in the rental unit and that would be allocated 100% to the rental. An example may be the garage disposal in the rental had to be replaced, then 100% of this expense is rental related.
