Investors & landlords

Ok, let me provide you with some steps that may clarify your situation. We will report this on one Schedule E instead of two to avoid any confusion between yourself and the IRS.

1.  When you begin entering your profile there is a page that asks, do any of these situations apply to this property? Here you will mark you rent out part of your home and that you converted this from a personal use to a rental in 2022.
2. There should be a screen that says Converting your home as a rental. Here you will need to prorate your expenses during the time you lived in the home and when you didn't live in it. 
3. Next it will ask if you rented this all year, here you can say yes.
4. Next if Turbo Tax asks you how to calculate the expense deductions, here you may wish to indicate you will do the math and enter your own numbers 
5. Go ahead and work through until you get to the rental summary page.
6. Now judging from your question and the tone of your writing, you sound like you might be pretty savvy. You can probably determine on your own how to prorate and report the expenses between the time you lived there and the time you didn't.. The depreciation may take a little work.

•  Here is how the depreciation is calculated.  Since you rented out the house six full months from July -Dec, this is 50% of the year. For the first six months, you used it partially for business and partially personal when you lived in the house. For the first six months, you are dividing the remaining 50% by half which is 25%. So if you add 50% + 25% =75%
• Now when you go to the asset and depreciation in the rental summary page, you will enter cost basis and date purchased. 
• The question will be asked if you used this 100% for business. Here you will check that you used it partially for business and partially for business. Then it will ask the date you started using it for business, you will say 01/01/2022. percentage of time is 75% .for business use. 
• Now the depreciation should be correct as listed in the details.

Now you gave me two conflicting scenarios. You mentioned in first post that you rented the room from January to June and then moved out and rented it out solely from July to the end of December.  Then you mention you started renting in June in your second post. It is really critical to get exact dates as this affects the business use percentage that i mentioned above. 

Let me know me know the exact date you moved out? Was it June or july?  Let me know by replying back to this post and tag me in the post.  The main thing is after looking at this, you just need to report on one Schedule E. 

Looking forward in hearing from you. 

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