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scott5577
New Member

How can I transfer rental income and expenses from Schedule C to Schedule E.

can i transfer rental income and expenses

 from schedule c to schedule e?

4 Replies
Leonard
Intuit Alumni

How can I transfer rental income and expenses from Schedule C to Schedule E.

No, you will have to enter the rental income and expenses into Schedule E.  You can not transfer the information from Schedule C.

Carl
Level 15

How can I transfer rental income and expenses from Schedule C to Schedule E.

Is 2018 the first year you're reporting rental income/expenses, and you just messed up by entering it on SCH C? If so, you can't transfer. But you do need to delete the SCH C. We can help with that.
Also let me know if 2018 is the first year you are dealing with rental property. I have a ton of information you will find useful. I can't stress the importance of absolute perfection on the very first SCH E. Even the tiniest of mistakes will grow exponentially larger over time. Then when you catch your error (if the IRS doesn't catch it first) the cost of fixing it will be expensive. So let me know if I can save you that potential headache and pain to your wallet. 🙂
scott5577
New Member

How can I transfer rental income and expenses from Schedule C to Schedule E.

Thank you for your response. No this is not the first year dealing with rental expenses, but it is the first year I've had problems with TurboTax. I am using the download version of TurboTax Premier. The online version would not deal with my state taxes so TurboTax help aided me in converting to the download version. For some reason TurboTax generated both a schedule C and schedule E with schedule C containing only three expense items and listing no income  but a loss on Line31.

Question one: can I transfer these expenses to schedule E and Delete schedule C?

Question two: in schedule E, expenses, most are prorated by the percent of days rented/personal use days, this includes expenses solely due to the rental for example supplies, cleaning, and general excise taxes. Do you know of a way to prevent TurboTax from prorating these expenses?

Question three: are you aware of any changes in tax laws relating to depreciation? I ask this because in 2017 TurboTax calculated depreciation of $29,000 versus only $9000 in 20 18.
I would appreciate any insights and also access to "the ton of information"You have.

I look forward to your response.

Carl
Level 15

How can I transfer rental income and expenses from Schedule C to Schedule E.

Question 1: No. You'll have to manually enter them in the Rental & Royalty Income (SCH E) section of the program, one keystroke at a time. Then you'll have to delete the SCH C business entirely. I'll cover deleting the SCH C stuff at the bottom.
Question two: I first question if you actually have personal use days. Personal use is clarified as having lived in the property as your primary residence, 2nd home, or vacation home. I see folks incorrectly say they do all the time, when the fact is, they don't. For example, if you lived in the property for two weeks after the last renter moved out, for the sole purpose of doing a "turn around" to prepare the property for the next renter, that's not personal use any way you look at it. Your residence is say, 150 miles away and for you to drive back and forth everyday is unrealistic.
However, if you bought the family with you so they could ski the slopes for two weeks while you did all the work for the turn-around, that's personal use days any way you look at it.  So do you "really" have personal use days?
Question three: You meant to say "$9000 in 2017" I presume, and not 2018. This will commonly happen when you have not entered the correct amount of "prior depreciation already taken". To confirm you do "in fact" have that figure correct, look at the IRS Form 4562 from your 2017 tax return. There will be two of those forms that print in landscape format. You want the one titled "Amortization and Depreciation Report" that prints in landscape format for that specific property.
For each asset, add together the amounts in the "prior years depr" column and "current year depr" column on the 2017 form 4562. That is the total you should enter in your 2018 return for the prior year's depreciation already taken.

Now, if you do "in fact" have personal use, then depending on the number of days, that will definitely affect the depreciation allowed each year. So if you did have "true" personal use days in 2018, that high depreciation for the year tells me that the issue most likely, is that you have an incorrect amount for prior year's depreciation already taken.

To remove the SCH C and all related forms in one fell swoop:
 - Under the Personal Income tab scroll down to Business Items and elect to update Business Income & Expenses (SCH C).
 - Now just click the Delete button next to any business entry there, followed by YES to confirm the deletion and work it through until you exit back to the main summary list.

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