You will enter your rental on Schedule E. If this is strictly a rental with no personal use, it is fairly straightforward. If it is used for both personal and rental, it is a vacation home and subject to certain rules.
https://www.irs.gov/taxtopics/tc415.html>
Enter your information under the Rental Section. Your basis is your purchase price plus the cost of the improvements. The furniture will be separate as it will definitely not last 27.5 years. You may want to list each piece separately, so if it gets destroyed, you can remove it from service and purchase a replacement and depreciate that one as new.
Steps
Go into your TurboTax return.
- 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
If you're also filing a
nonresident state return to report income from an out-of-state rental property,
be sure to complete your nonresident state return before you prepare your
resident state return when you get to the State Taxes section.
