This is easily done on TurboTax. It's good to have his last year's return with you as you go through it this year on TurboTax.
First, let's start the Schedule E form for the rental:
Tip: 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:
Go into your TurboTax return. Not sure you're
in there? Click on the orange Take me to my return button.
1.
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.
o We'll first ask you to enter general
information about your rental (description, address, ownership percentage,
etc.)
o Eventually, you'll come to the Rental
Summary screen which is where you enter your:
·
Rental income
·
Rental expenses
·
Capital assets and
depreciation
·
Vehicle expenses
The Depreciation interview will calculate the depreciation for each asset (building, appliances, etc) that has been taken in the past as long as you know the original cost and when it "placed in service" (basically purchase date). For this, it is good to have the Depreciation Worksheet from last year's return. Your preparer last year should provide this to you, if you don't have it already.
The depreciation shows up on Schedule E as one number on line 18, but there are calculations behind the number. That's why you need to tell TurboTax the purchase date and price of each asset.
