Why are my real estate expenses showing up as only half the amount when I input to Turbotax? For example, if taxes were $7,000 for the year, why does it appear as $3500?

Forum|Forum|3 years ago
February 13, 2023
2 replies
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TurboTax Self Employed Online

AnnetteB6

Level 15

This answer is provided with the assumption that you are reporting expenses for a rental property and you are seeing only half of the expected amount. If the assumption is incorrect, please add more details such as where you are seeing the incorrect amount.

The most likely reason that an incorrect or unexpected amount would be reported on Schedule E Rental Income and Expenses would be that the program is prorating the expenses based on the number of personal days entered for the property. Keep in mind that in most cases there should be no personal days entered unless you are reporting income and expenses for a vacation rental. If you have converted the property from personal use to rental use or vice versa, then the days that you used the property as your residence do not count as 'personal' days. Those days were either directly before or after the conversion to rental and should not be considered to be personal use of the rental property.

To correct the prorated calculation, revisit the Property Profile section and verify the personal use days are correct.

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