Solved: I rent a portion of my home out. The form says to enter total expenses as Turbotax will allocate but Learn More says to enter allocated expenses. Which should I enter?
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New Member

I rent a portion of my home out. The form says to enter total expenses as Turbotax will allocate but Learn More says to enter allocated expenses. Which should I enter?

The Note in each rental expense field says to enter 100% of expenses as Turbotax will allocate expenses.
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Accepted Solutions
New Member

I rent a portion of my home out. The form says to enter total expenses as Turbotax will allocate but Learn More says to enter allocated expenses. Which should I enter?

You have the choice of allowing TurboTax to do the allocating or choosing to do it yourself. Personally, I like to do it myself, but that's just me.

When you're answer the question regarding how many days is a room in your house rented, answer the number of days rented (258) and how many days you used that room personally the rest of the year (107). You can't rent it and use it personally at the same time.

Here's some other info you may find helpful:

"Do any of These Situations apply to This Property"

Select "I rent out part of my home".

When you marked the box for TurboTax to allocate per the percentage of the business portion of a mixed-use property the expenses are only entered one time in the rental section and TurboTax will allocate correctly to personal Schedule A and business to Schedule E according to the percent you entered.

Yes, to let TurboTax calculate the expenses for you.

On screen "enter use percentage" this where the % goes for TurboTax to do the calculation.

Enter rental use percentage.

TurboTax will flow personal to Schedule A and rental to Schedule E.

Only the exclusive used are is considered rental area.

Common area is available to all and is not a factor in allocation of expenses.

 

How to divide expenses.  If an expense is for both rental use and personal use, such as mortgage interest or heat for the entire house, you must divide the expense between rental use and personal use. You can use any reasonable method for dividing the expense. It may be reasonable to divide the cost of some items (for example, water) based on the number of people using them. The two most common methods for dividing an expense are (1) the number of rooms in your home, and (2) the square footage of your home.  

With example at below link

Renting Part of Property     

http://www.irs.gov/publications/p527/ch04.html#en_US_2015_publink1000219159


View solution in original post

4 Replies
New Member

I rent a portion of my home out. The form says to enter total expenses as Turbotax will allocate but Learn More says to enter allocated expenses. Which should I enter?

You have the choice of allowing TurboTax to do the allocating or choosing to do it yourself. Personally, I like to do it myself, but that's just me.

When you're answer the question regarding how many days is a room in your house rented, answer the number of days rented (258) and how many days you used that room personally the rest of the year (107). You can't rent it and use it personally at the same time.

Here's some other info you may find helpful:

"Do any of These Situations apply to This Property"

Select "I rent out part of my home".

When you marked the box for TurboTax to allocate per the percentage of the business portion of a mixed-use property the expenses are only entered one time in the rental section and TurboTax will allocate correctly to personal Schedule A and business to Schedule E according to the percent you entered.

Yes, to let TurboTax calculate the expenses for you.

On screen "enter use percentage" this where the % goes for TurboTax to do the calculation.

Enter rental use percentage.

TurboTax will flow personal to Schedule A and rental to Schedule E.

Only the exclusive used are is considered rental area.

Common area is available to all and is not a factor in allocation of expenses.

 

How to divide expenses.  If an expense is for both rental use and personal use, such as mortgage interest or heat for the entire house, you must divide the expense between rental use and personal use. You can use any reasonable method for dividing the expense. It may be reasonable to divide the cost of some items (for example, water) based on the number of people using them. The two most common methods for dividing an expense are (1) the number of rooms in your home, and (2) the square footage of your home.  

With example at below link

Renting Part of Property     

http://www.irs.gov/publications/p527/ch04.html#en_US_2015_publink1000219159


View solution in original post

New Member

I rent a portion of my home out. The form says to enter total expenses as Turbotax will allocate but Learn More says to enter allocated expenses. Which should I enter?

I never get prompted to "enter use percentage".

 

I also don't see a the box for "TurboTax to allocate per the percentage of the business portion of a mixed-use property"

 

Under "Do any of These Situations apply to This Property"

I have selected "I rent out part of my home".

 

I was able to do this with no problem last year.

Employee Tax Expert

I rent a portion of my home out. The form says to enter total expenses as Turbotax will allocate but Learn More says to enter allocated expenses. Which should I enter?

You will not enter the percentage, TurboTax will calculate that for you based off of the information you provide.

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New Member

I rent a portion of my home out. The form says to enter total expenses as Turbotax will allocate but Learn More says to enter allocated expenses. Which should I enter?

for what its worth, got the same problem.

I'll just multiply the expenses X rental use percentage by hand

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