Yes. The deductions will have to be allocated between the portion of the home that is rented out and the portion that you live in. Additionally, to take a deduction for the expenses for the part of the home that you live in, you would have to qualify to itemize your deductions.
To
itemize your deductions, you would have to have personal expenses such as
medical and dental expenses, mortgage interest, real estate taxes, unreimbursed
job expenses and certain miscellaneous expenses, and charitable contributions
that when combined together, total more than your standard deduction. For
example if you file single, your standard deduction is $6300 so you would have
to have personal expenses that total more than $6300.
In
the rental property section, Turbo Tax asks you questions about your property.
Since you are renting out a portion of your house, you have the option of
entering all of the expenses such as mortgage interest and property taxes in
the rental section and then Turbo Tax will allocate the appropriate amount of
each expense as an itemized deduction.
The
other option is that you can enter just the portion of each expense that should
be allocated to rental property and then manually enter the remaining amount in
the itemized deductions section.
To make entries in the rental property section
of Turbo Tax, you will need to use the Premier edition:
- log
in to your Turbo Tax account
- click
on "take me to my return"
- click
on the "federal taxes" tab
- click
on "wages and income"
- scroll
down to "rental properties and royalties" and click on "start"
- Turbo Tax will start by asking you questions about your rental property
- when you reach the screen that says, "do any of
these situations apply to you?"
- there
is a selection that says, "I rent out a unit in a multi unit property". This should be
check marked
- continue
navigating through the screens, until you get to the screen that says,
"let us calculate your expense deductions for you". There are two
options on this screen.
-
answer
yes if you want to enter your total expenses and then Turbo Tax will allocate
the expenses between rental expenses and itemized deductions.
-
answer
no if you want to enter only the amount of the expense that is rent related.
You will then need to enter the remaining amount of expenses that qualify to be
itemized, in the itemized deductions section of Turbo Tax.
