- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Investors & landlords
TurboTax will not automatically calculate the deductible expenses based on the percentage of the rental space.
yes it will. The issue is that the program is asking the wrong question for that specific scenario. Two times the question, "percentage of time" is asked. The first time it's asked, you enter the percentage of time it was rented starting from the date of conversion to rental. So that would be 100%.
The 2nd time the "percentage of time" is asked, that question should be "percentage of floor space". So if you enter the percentage of floor space, the program will correctly figure the allowed depreciation.
Take note that this only applies to a situation where you are renting out a part of your residence or a part of other personal use property.
This has been an issue for years, yet it's got to the point where I'm being ignored when I point it out. So be it.