You can enter your rental situation under Rental & Royalty Income section, by setting your house up as a rental property. During the questions to setup the property, you'll be able to tell the software that your house is part-personal and part-rental.
You'll come to a summary screen for your property and be able to enter all income and expenses from there. When you enter your home expenses, which can include your lot fee, the software will allocate a portion to the rental based on the square footage.
To enter this:
- Click Take me to my return
- Select the Federal Taxes tab and then click the Wages & Income tab below it
- Scroll down to the Rental Properties and Royalties section and click the blue hyperlink Show more
- Click Start/Revisit next to Rental Properties and Royalties (Sch E)
- Next you'll be asked about your real estate involvement and then you'll be at a summary screen of your rental property(ies) (or you can start setting up your rental). If already started setting it up, click Edit next to the property.
- If you already setup your property, you'll be at Review your XYZ Rental Summary. From this screen, click Edit next to the Property Profile. On the screen titled, Do Any of These Situations Apply to This Property? be sure to select I rent out part of my home. The next screen will recommend letting the software allocate your expenses and you'll need to select Yes to let the software do so. Continue answer the questions.
- Back at the Review your XYZ Rental Summary you'll be able to enter all rental income and expenses, making the selections from this screen.
