I own/live in a home, rented out a room with use of other parts of house for 5 months. My real estate tax is 1619.90 but Turbo Tax lists it as 2576.00.

[jjocean4135]

I own and live in a single family home all year. For 5 months I rented a room out for $500 a month including use of kitchen, dining room and living room with TV.  My statement shows real estate tax of $1619.90 but Turbo Tax lists it as 2576.00. I think somehow it must be listed twice or added incorrectly.  I did not rent through an agency, I only have a contract I signed with the roommate.  I found the roommate through a friend of mine.

[MichaelDC · Accepted solution]

Try to enter your property tax and mortgage interest in the Schedule E for the Rental and remove it from the Deductions & Credits section.

TurboTax will then automatically calculate how much of this taxes and interest can be deducted for your rental. It will also add any remaining interest to Schedule A. The total of the two should equal your 1098.

For example, when TurboTax asks Was This Property Rented for All of 2016? and you answer No, you'll be prompted to enter days of rental use and days of personal use. As you continue in the rental section, you'll enter the mortgage interest and property tax for the home. Later, when you work on your personal Deductions & Credits, TurboTax will remind you not to enter property taxes or mortgage interest that have already been included with your rental property. (Click the attachments below to enlarge them for reference.)

Also, consider if the info below is relevant to you:

Roommate rental

If this is merely a cost sharing arrangement where the amount paid is below fair market rental, there would be no reportable income to you. If the “rent” amount is fair market value, or more, There is still some question as to whether you even  have to report it, as it almost always comes out zero. Most people take the attitude that it is not income; it's just roommates sharing expenses and ignore it. Family, as opposed to unrelated roommates, makes that position stronger.

Here’s what you may be required to do:

Report the income (enter at Rents & Royalties/Income & expenses from Rental Properties); then deduct the expenses. TurboTax will do this on schedule E. If the room mate has full run of the house, and there's just the 2 of you, then half your expenses are deductible (mortgage interest, property taxes, insurance, utilities, repairs, and depreciation [if needed}). Your net income will usually be less than zero.

What you are NOT allowed to do, because it is your own home (you have "personal use") is claim a loss from this activity, to offset other income. Because of the "personal use rule", your deductions are limited to your income. Net effect ZERO.

It is possible for you to gain a positive tax effect from this activity; If enough of your schedule A deductions (mortgage interest &  property tax) are shifted to Schedule E, and your standard deduction becomes bigger than your itemized deductions, you will have effectively saved on taxes.

If you have no mortgage, then there could well be profit involved, which you may have to offset with depreciation that could lead to "recapture" in the future when the property is sold.