depreciation and Percentage of time I use rental house for this business...room rented in my house

[siallstar]

Hello. I have three rooms I rent in my house and I live in the other. I have calculated that percent rented is 42.5%. and the rooms are rented for the entire year. 

In turbotax for schedule E I have selected that I am renting part of my home. 

I have my rental house as an asset. It asks me for the Percentage of time I used this item for this business in 2020..

Is it referring to the entire house, or just the rented portion?   i dont know if I put 100% or 42.5% here...

If  I enter 100%, when I go back to the asset, the depreciation is too high, its basically 100% of the house being depreciated. However, I don´t know if turbotax is adjusting that number properly on another screen.  (multiplying it by the rental % and I am just not seeing it

grateful for guidance. thank you!

[ThomasM125]

When you entered the cost of your house, you were instructed to enter the total cost times the percent of the house that you rented. When you are instructed to enter the percent of time you used it for business, you would enter 100% if you didn't use it at all for personal purposes. 

I think you probably entered the whole cost of the house, whereas you should have just entered a portion of the cost. That is your problem most likely.

[Carl]

There are two basic percentage questions you may be asked. Here's the clarification.

Percentage of property rented - the total square footage of floor space that is exclusive to the renter(s)

Percentage of time rented - Of the total square footage that is rented, what percentage of the time from the date you placed it "in service", was it used for business? This will be one hundred percent. Likewise, the percentage of time it was used for personal use *ONLY* during the time it was classified as rental space, will be ZERO percent.

[lw75]

I rented a bathroom and bedroom in my home for 7 months in 2022.  I charged 400 a month for rent.  My turbo tax somehow calls it a rental property as if I dont live there also.  Somehow it calculated 2 separate taxes and neither is correct.  I tried to change the property taxes on my home and it won't let me. How do I get back to that page and redo it?  I dont know how to calculate all the expenses of having a renter that Turbo lists.  I'll never rent a room in my home  to someone again!

[PatriciaV]

Yes, renting a room in your home qualifies as a Rental activity to be reported on Schedule E. You can return to this section of TurboTax by opening your return and using the magnifying glass in the header to search on "Schedule E" then clicking "jump to schedule e."

Review your entries for the Rental Property Info, which should contain a question about renting part of your home. You may have entered a percentage or the square footage. TurboTax uses this percentage to allocate your shared expenses (like property taxes and mortgage interest) between the rental activity and your home.

You are required to report the income from this activity, but reporting expenses is optional. Obviously, if you have expenses, your taxable income from this activity will be lower.

Additional Info:

• Where do I enter income and expenses from a rental property?
• What kinds of rental property expenses can I deduct?
• How do I handle capital improvements and depreciation for my rental?

@lw75