Rental income and expenses from the rental of residential property is
reported in the Rentals and Royalites section of Wages and Income.
- Go to Federal Taxes
- Click on Wages and Income
- Click on Explore on My Own
- Scroll down to Rentals and Royalties, click on the start or update button
Rental income is reported on Schedule E (Form 1040).
You basically treat the rented section as a separate part of your property.
More Information:
http://www.irs.gov/publications/p527/ch04.html#en_US_2013_publink1000219159
