Home share Income/Expenses

[kkjones]

How to I make this situation report properly in Turbo Deluxe?

• In 2024 I rented 1/2 of my house  while I lived on the premises
• It was available for rent all 12 months, but I only rented for 7 months

Questions:

If I enter 210 days for "Days Rented at Fair Market Price", I can only enter a max of 155 days for "Personal Use During the Year"  , which doesn't seem accurate. What should I enter?

I understand that I can deduct 1/2 of expenses--do I have to calculate and enter these amounts manually to the Schedule C, or is there a place to describe the rental space as 50% and let Turbo sort it?

Thank you!

[AmyC · Accepted solution]

1. You may not have personal use, you may 155 or anywhere in between. You rented out part of your home so you will use Sch E to report the income and expenses. For the part of your home that you rent:

• Personal use days are the days you used the room - family visiting, etc. 
• Business use - enter all the days the room was ready for someone to show up as business days -even though the room wasn't rented, it was ready and in business mode.

The IRS assumes you live in your bedroom every day so there is no need to enter your personal information.

2. When you go through the Sch E entry, you will select that you rent out part of your home. As you go through the property profile, it will ask if you want to do the math or have the program do the math. You will enter the portion of your home that is rented. Shared spaces don't count like the living room and kitchen. 

If you have an expense related to just the rented room, like drywall repair or something odd, select to do the math yourself. Otherwise, let the program do the work.

References:

• Where do I enter income and expenses from a rental property?
• About Publication 527, Residential Rental Property ... - IRS
• About Schedule E (Form 1040), Supplemental Income and Loss