Carl
Level 15

Investors & landlords

I take it you are renting out a portion of your primary residence.

Work through the asset in the assets/depreciation section. There is a screen that will ask you:

"Percentage of time this property was a rental in 2021" (or something close to that). For your specific and explicit situation, that is the wrong question to be asked. It should be asking you percentage of "SPACE" that is exclusive to the renter. Yes, I know you've already entered that on a previous screen. But where it asks for percentage of time, enter the same percentage of space you entered before. Then the depreciation will be right.

To check the depreciation and "Know" it's right, see IRS Publication 946 at https://www.irs.gov/pub/irs-pdf/p946.pdf and use the worksheet on page 37. The table that applies to line 6 of that worksheet is table A-6 on page 72.