If you have the tricky case of multiple renters moving in at different times, and only occupying let's say an average over the year of 20% of your home that you also live in:
* Under TurboTax Wages and Income, select Rental Properties and Royalties - answer questions from the first two screens, then Edit (or Add if first time entering):
- Select Property Profile, answer 3 screens of questions, then say Yes, property was rented all year, answer next screen, then say No, I'll do the math. Then click through rest of Property Profile, then:
- Select Rental Income section - enter the Rental income.
- Select Expenses section - select Walk me through everything. Then just enter 20% of your expenses for each of Advertising, Utility, Mortgage Interest, Real Estate taxes, etc. (and include Electricity/Gas, Water, Internet, Cable TV, Netflix in Utilities (my Garbage and Sewage are in my Real Estate (Property) Tax)).
* Under Deductions section (not Rental section) - Enter 80% of the Mortgage interest under the Mortgage interest section (and don't enter any Property tax under the Mortgage interest section), and 80% of the Property Tax under the Real Estate tax section.
* Check your Schedule A and Schedule E when you print your taxes, to verify - it should show 80% of your Property Tax and Mortgage interest in Schedule A, and 20% in Schedule E.
