Reporting Rental House Income

[tylbriggs]

Where do I report Income for a single home dwelling that I am renting out.

[HelenaC · Accepted solution]

See how to enter rental income and expenses below. 

TurboTax calculates the net rental income (loss) based on your entries. The rental is reported on Schedule E - IRS.gov Supplemental Income and Loss (From rental real estate, royalties, partnerships, S corporations, estates, trusts, REMICs, etc.)

You report the amount your tenants paid as rental income.

You report the amount from your 1098-Mortgage Interest Statement Box 1 as mortgage interest. Mortgage Principal is not deductible.

Note: If your rental property is located out-of-state, make sure you first set up that state properly in Personal Info. That way, when you do your state taxes, we'll be ready to go.

Now let's enter that rental:

1. In TurboTax, search for rentals and then click the "Jump to" link in the search result.
2. Answer Yes to the question Did you have any rental or royalty income and expenses?
3. Follow the on-screen instructions as you proceed through the rental and royalties section.
   • We'll first ask you to enter general information about your rental (description, address, ownership percentage, etc.) 
   • Eventually, you'll come to the Rental Summary screen which is where you enter your rental income and expenses, assets and depreciation, and vehicle expenses.

Tip: Rent is considered income in the year you received it, not the year it applies to. This means that a rent payment for the month of January 2017 collected in December 2016 is reported on your 2016 return.

If you're also filing a nonresident state return to report income from an out-of-state rental property, be sure to complete your nonresident state return before you prepare your resident state return when you get to the State Taxes section.

Related Information:

• Can I claim a security deposit?
• What kinds of rental property expenses can I deduct?
• What is rental depreciation and how does it differ from an expense?
• How do I handle capital improvements and depreciation for my rental?

[zz3bcn]

In reading the Oregon Form 40N instructions you do not need to breakout income / Mortgage Expense etc., but only report the profit/loss as reported on 1040 Income section for Rental real estate etc (line 17) to line 17F on Form 40N.  In my case that was zero since our combined income was over $150K, so I will just report it from the IRS Schedule E and provide a copy of the Passive Activity Loss Limitation form 8582 to document accumulated losses.