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anonymous8
Level 2

How to report "not for profit rental income" in TurboTax?

I have a rental property which I'm renting to a friend below the fair market rental price. The apartment is outside the US. My total income from this "not-for-profit rental" was lower than my expenses (maintenance fees, insurance and taxes).

First I didn't know the apartment is treated as "not for profit rental" and therefore "personal" (not rental). So I started section "Rentals, Royalties, and Farm" in TT. I picked "Rental Properties and Royalties (Sch E)" and continue with the interview. When asked how many days I was renting this apartment at below the market price, I answered "365" and TT suggested it will delete this rental, because it's personal and not rental. Fine by me.

The problem I have is, I wasn't navigated, nor instructed what to do next. How do I navigate in TT to report my "not for profit rental income"? Bear in mind I want to do Standard Deduction (if that matters).
1 Best answer

Accepted Solutions
Coleen3
Intuit Alumni

How to report "not for profit rental income" in TurboTax?

Yes. It is considered a Not-For-Profit Rental.  Since you do not carry on your business or investment activity to make a profit, you cannot use a loss from the activity to offset other income. You do not therefore, need to depreciate.

Not Rented for Profit

Where to report.    Report your not-for-profit rental income on Form 1040 or 1040NR, line 21. If you are filing Form 1040 and you itemize your deductions, you can include your mortgage interest and any qualified mortgage insurance premiums (if you use the property as your main home or second home), and  real estate taxes on the appropriate lines of Schedule A (Form 1040). 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.

To report:

  • Click on Federal Taxes
  • Wages and Income
    • You may need to click Jump to Full List, Show me everything or I’ll choose what I work on depending upon your situation and the TurboTax version you are using.
  • Scroll to the very bottom; Less Common Income; Click Show more (if start isn’t displayed)
  • Click Start across from Miscellaneous Income, 1099-A, 1099-C
  • At the “Other Taxable Income” screen, enter your description – Not for Profit Rental and then amount of income you received.

 

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5 Replies
Coleen3
Intuit Alumni

How to report "not for profit rental income" in TurboTax?

Yes. It is considered a Not-For-Profit Rental.  Since you do not carry on your business or investment activity to make a profit, you cannot use a loss from the activity to offset other income. You do not therefore, need to depreciate.

Not Rented for Profit

Where to report.    Report your not-for-profit rental income on Form 1040 or 1040NR, line 21. If you are filing Form 1040 and you itemize your deductions, you can include your mortgage interest and any qualified mortgage insurance premiums (if you use the property as your main home or second home), and  real estate taxes on the appropriate lines of Schedule A (Form 1040). 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.

To report:

  • Click on Federal Taxes
  • Wages and Income
    • You may need to click Jump to Full List, Show me everything or I’ll choose what I work on depending upon your situation and the TurboTax version you are using.
  • Scroll to the very bottom; Less Common Income; Click Show more (if start isn’t displayed)
  • Click Start across from Miscellaneous Income, 1099-A, 1099-C
  • At the “Other Taxable Income” screen, enter your description – Not for Profit Rental and then amount of income you received.

 

anonymous8
Level 2

How to report "not for profit rental income" in TurboTax?

I can see three options that technically could fit:
1. Other income not already reported on a Form W-2 or Form 1099;
2. Income from renting out personal property (not rental real estate or farm rentals);
3. Other reportable income
Which of these should I pick?
Coleen3
Intuit Alumni

How to report "not for profit rental income" in TurboTax?

Other reportable income
anonymous8
Level 2

How to report "not for profit rental income" in TurboTax?

Thank you!
Coleen3
Intuit Alumni

How to report "not for profit rental income" in TurboTax?

My pleasure.
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