If the rent you charged is UNDER the fair rental price in the market, it is considered as personal use days. You will report the rental income as other income on line 21 of Form 1040. No rental expenses are allowed for deductions.
To enter the information under Other Income in TurboTax Deluxe online program, go to:
- After sign into your account, select Pick up where you left off
- Top right corner / in the search box- type in " other reportable income", and Enter
- On-screen, "Other Wages Received", answer Yes and continue to follow prompts
- On-screen, "Any Other Earned Income", answer Yes to continue
- On-screen, "Enter Source of Other Earned Income". answer Other
- On-screen, "Any Other Earned Income", enter description and amount.
If your friend is charged at the fair rental rate and your home is his or her main home, it is considered as a rental transaction for a business. You are required to report the rental income and allowed us to deduct related rental expenses on Schedule E.
To enter rental income and expenses, you will need to upgrade to TurboTax Premier online program to enter the information. In TurboTax Deluxe online program, follow these steps:
- After sign into your account, select Pick up where you left off
- At the right upper corner, in the search box, type in schedule e then Enter
- Select Jump to schedule e and follow the prompts
- On-screen, Income from Rentals or Royalty Property Your Own, answer Yes
- On-screen, TurboTax Premier is right for you, select Upgrade to TurboTax Premier
- Continue to follow step-by-step instructions
