AnnetteB6
Expert Alumni

Investors & landlords

If you are only renting part of your home, then you need to check the boxes for 'first year rented' and 'renting part of my home'.  You should also check the box regarding converting from personal to rental use.  

 

Note that when you are asked about the fair rental days and personal use days that the question is referring to the portion of your home that you are renting only.  You would only have personal use days if you used that space when it is not rented.  Days prior to starting to advertise it as a rental do not count as personal use days because the rental did not exist yet.  

 

With the box checked to show that you rented only a portion of your home, there should be a question that asks you to allow TurboTax to calculate the expense deductions for you.  If you choose 'yes', then that is where you will enter the percentage of your home that is being rented.  

 

If you choose to do the math and only enter the expenses related to the rental, then you will not see a question about the percentage being rented.  

 

Keep in mind that you will need to prorate the expenses you enter by the number of months that you had the rental.  TurboTax will not do that math for you.  For example, suppose you paid $1200 for property tax for the year and you are renting 10% of your home.  If your rental started on August 1st, then you would enter $500 for the property tax amount as a rental expense if you are allowing TurboTax to do the math for you.  This would mean that $50 of property tax is reported on Schedule E and $450 would be carried to Schedule A.  The other $700 would need to be entered on Schedule A by you.  

 

If you choose to do all the math yourself, then simply enter $50 for the property tax amount reported on Schedule E (five months of tax prorated by 10% of the property being rented).  

 

 

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