When renting out a part of your home or a part of other “personal use” property, there is one question in the Assets/Depreciation section that is wrong for “this” specific situation. You will see this question when entering the property in the Assets/Depreciation section. The question reads, “Percentage of time I used this item for this business in 2020 (e.g. 80%)” That question should read “percentage of floor space I rented out in 2020”. The program already “knows” the percentage of time, based on the date you entered above this question. So do not enter the percentage of time in this box. Instead, enter the percentage of floor space that was rented out.
If desired, you check the math by using the work sheet in IRS Publication 946, which starts at the bottom of page 38 at https://www.irs.gov/pub/irs-pdf/p946.pdf
For the property itself which is depreciated over 27.5 years, use table A-6 on page 73.
If the numbers you get don’t agree with what the program gets, then you answered a prior question incorrectly is all. Just work through the asset again and double-check all your answers and selections.
