I was renting out two bedrooms in my house in 2021 and I am using turbo tax premier 2021 windows desktop software.
1. when going through the questionaire do I make each bedroom I rented a separate "asset". I have two bedrooms which I am renting. One I found a tenant for in july the other in september.
I inputed 12% as the portion of my house which is rented. I also inputed my house value and land value correctly.
1. I noticed that the deduction for depreciation is greater than my income from the property was less than that is this correct or could this be a mistake?
Extra info:
In "What type of rental is This" selected single family
In "Do any of these situation apply to this property" I selected in New section 2021 was the first year I rented this property and under rented section - I rent out part of my home.
In "Was this property rented for all of 2021" - selected No then in days rented at a fair rental price I put in 177(july - dec). For personal use during the year I put 0. I left the "I did not rent, nor attempt to rent, this property at all in 2021" box unchecked
In "Do you have and office in your home" - no selected
In "Let us calculate your expense deductions for you" - selected yes and inputted 12.1 percent for rental use percentage based on sqft calculation
In "You indicated you actively participated" screen I selected yes as both bullet points apply to me
In "Did you pay anyone $60 or More ... " - selected no
Now under assets and depreciation item
"Tell us a little more about your rental asset" - selected residential rental real estate
"next sub screen" -> entered cost as purchase price of house , cost of land from county website and finally date of purchase
"next sub screen" -> checked in I purchased this asset. For "Have you used this item 100% for buisness sinc eyou acquired it" I selected no then "I used this item for personal purposes before I started using it in this buisness". For date I started using it in this business I put the date the first tenant moved in. For the percentage of time I used this item for this business in 2021 I entered 100%. Is this correct or should this include time searching for tenant? If I purchased house at the end of march should I make this percentage 9/12 75% assuming my tenant search began at the start of april?
2. Also I split the utilities with the tenants so I am not going to add utilities as an expense is this correct?
3. The only other expense I should list are property tax and mortgage interest?
Most of my questions have been answered here https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/do-i-have-to-claim-in... if that helps
