612902
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Attend our Ask the Experts event about Tax Law Changes - One Big Beautiful Bill on Aug 6! >> RSVP NOW!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Nicole6
New Member

Can fair rental days and personal use both be 0 on Schedule E?

I rented my 2nd home all year to a coworker at less than market value. Does that mean I should enter 365 for personal use or 0? I entered 0 for both last year but the directions say that all days not rented at fair market value are considered personal use days - this makes me think I should enter 365. Do I need to amend last year's return if I was supposed to put in 365?
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
MichaelDC
New Member

Can fair rental days and personal use both be 0 on Schedule E?

According to the IRS, "a day of personal use of a dwelling unit is any day that the unit is used by anyone at less than a fair rental price."

This is a Not for Profit Rental Income as you do not rent your property to make a profit.

TurboTax will take care of all of the following when you enter 365 days of personal use.

If you do not rent your property to make a profit, you can deduct your rental expenses only up to the amount of your rental income. You cannot deduct a loss or carry forward to the next year any rental expenses that are more than your rental income for the year. For more information about the rules for an activity not engaged in for profit, see Not-for-Profit Activities in chapter 1 of Pub. 535.

You can report your not-for-profit rental income on Form 1040, line 21. For example, you can include your mortgage interest (if you use the property as your main home or second home), real estate taxes, and casualty losses on the appropriate lines of Schedule A (Form 1040) if you itemize your deductions.

If you itemize your deductions, claim your other rental expenses, subject to the rules explained in chapter 1 of Pub. 535, as miscellaneous itemized deductions on Form 1040, Schedule A. You can deduct these expenses only if they, together with certain other miscellaneous itemized deductions, total more than 2% of your adjusted gross income.





Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question