@AmeliesUncle - You seem to be the expert, here 😉
I rent out a room in my home (my main residence) for part of the year usually for 7-30 days (for the rest of the time it stays empty). I use (2021 Home and Business Desktop edition) and have other 'standard' rental property I use Schedule E for.
My understanding is that I should use Schedule E for this room renal in my personal residence, also. But that it will be treated as "non-passive" activity and thus can not generate losses and not be totaled with the passive gains/losses on Schedule E.
--> Does TTax account for all of that and leads me through it in the Step-by-Step* In particular:
1) Does Turbo Tax help decide if I can use a DEPRECIATION deduction for this room (Schedule E line 18) and. If so, does TT calculate the depreciable basis amount, create a Form 4562 and track the depreciation year on year? (I assume the pro-ration of the depreciation happens based on the % of total square footage of the residence).
2) Most importantly: Does TT SEPARATE the handling of the "room in residence" column in Schedule E to account for this "Non-Passive" character? -- I understand that a "special provision" kicks in that disallows losses (they need to be carried forward) - IRC section 280A. Thus incomes or losses from this column of Schedule E should not be totaled with other as happens with 'normal rental income / losses that ARE passive.
*Note that I can not simply try it out myself, yet, since the Depr and Amort. Area in TT desktop is still "under construction as of March 22nd! (TT investigation # INV-19570)
