I am at the part where it asks for the purchase price of the property we purchased 2018 and are renting PART of. Do I enter the total purchase or the % used as rental?

[Wave]

We bought the house Jan 2018. Guest house was always going to be used as a rental. We repaired/remodeled it and it was ready to rent in April. All the questions about purchase price, depreciation, mortgage ,taxes and other costs associated do not specify if we are inputting that of the whole property or the portion that is rented. Is there a section later that we put in the % of property used as rental, or do we calculate it and input those values. It is not clear at all.

[Zbucklyo · Accepted solution]

In theory, Turbotax can do the allocation.  However, it is a tricky process, and many people end up entering things incorrectly.  I'd do the allocation manually, offline, and then use 100% as a rental.  So, let's say you use square footage as your allocation method.  Guest house 1000 sq. ft, Main House 2000 sq ft.  Total purchase price $500,000, land value $100,000.  Purchase price of guest house is 1/3 * $500,000, depreciable structure value is 1/3 * $400,000 implies value of land for rental is 1/3 * $100,000.  Then mortgage, property taxes are allocated 1/3, 2/3.  But you do everything outside of Turbotax.