Are expenses associated from owning a rental property counted as separate from the standard deduction or are they included in the total for the standard deduction

[MinhT · Accepted solution]

When you own a rental home, expenses related to that home such as mortgage interest, property taxes (along with other expenses such as depreciation, repairs,...) are reported in the rental section of TurboTax (Wages and Income > Rental Properties and Royalties). They are quite separate from your standard deduction,

Mortgage interest and property taxes on your home (residence) are claimed as itemized deductions under Deductions and Credits. When itemized deductions exceed your standard deduction, you use itemized deductions instead of the standard deduction to get a larger tax break.

[Gdenis]

How do I get a drop down menu for a number of expenses

[Carl]

How do I get a drop down menu for a number of expenses

No such thing. Being a landlord is basically a business. While that business income and associated expenses is reported on SCH E as a phyiscal part of your personal 1040 tax return, it is still treated as "a physically separate business".

Rental income is passive, while W-2 income is "earned". For W-2 income you have to go out and actually "do something" on a recurring basis to actually earn it. But with rental income you don't "do" anything on a recurring basis. All you do is "sit there" and collect the rent every week, or every month, or every whatever payment period you have set up for the tenant to pay you the rent.  Rental income is a form of "UN"earned income called passive income. Rental expenses are also considered to be passive.

Therefore, your rental expenses can *ONLY* be deducted from you rental income. Period. End of story. Under no circumstances an with no exceptions will you *EVER* claim rental expenses on *ANYTHING* other than the SCH E where the rental income is reported. Again, there are no exceptions.