Your property improvements are entered in the assets/depreciation section. It works like this.
-The first thing listed in the assets/depreciation section is the entire property itself. Since your entire property is not for business use, you'll indicate that percentage of your floor space that "is" business use. The program will figure accordingly. (There is a caveat here, I'll cover later in a 2nd post in this thread.)
-For your property improvements, if those improvements you did are for the "EXCLUSIVE" use of the renter, and there will be NO personal use of the area while it's classified as a rental, then the business use percentage of those property improvements will be 100%.
-For those property improvements that are for the shared use of you and the renter, then list those improvements separate from those that are exclusive to the renter, and the appropriate percentage of business use. (I suspect you won't have any shared improvements, but mention it to cover all the bases.)
