For the sake of simplicity and hoping you find it useful, I'll provide you a simple example.
If you were renting out 50% of your house over the last few years, and in 2020 you started renting out the other half, here's the simplest way to do this.
-Do NOTHING with the current entries you have in the assets/depreciation section. Just leave them alone.
-Enter a completely new asset for the other 50% with an "in service" date being the date you started renting out that other 50% (meaning you rented out the entire property effective on the date you started renting out the other half - thus making the property a 100% rental property.)
Would you like other examples to compare? If yes, then I need to know how you presently have it set up in TurboTax.
- Did you enter the asset as 100% rental property with 100% business use, and just enter the percentage of your expenses based on the percentage of your property that is classified as a rental?
- Maybe you entered the property with the selection of "I rent out a part of my home" and entered total actual expenses - letting the program "do the math" for you to determine how much of each expense was allowed on SCH E?
