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Returning Member
posted Feb 10, 2023 9:28:51 PM

My Accountant retired. I have an AirBnB and need to depreciate that part of my house and deduct expenses associated with my AirBnB. What version of Turbo Tax do I need?

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17 Replies
Level 15
Feb 11, 2023 5:17:27 AM

If that was being reported on a Sch E then you need the Premiere version of the ONLINE program  OR  any of the DOWNLOADED versions.

 

If that was being reported on a Sch C  then you need the Self Employed version of the ONLINE program  OR  any of the DOWNLOADED versions.

Expert Alumni
Feb 11, 2023 5:23:21 AM

You will either need to use TurboTax Online Premier or higher, or one of the CD/downloaded versions of TurboTax (preferably Premier or higher).   Any of the CD/downloaded versions will have all the forms you need, but the higher versions will give you more guidance along the way tailored to the more complex situations such as rental income and expenses.

 

Before you begin, be sure that you have a complete packet of information from your accountant, including a depreciation worksheet showing what is being depreciated, the method of depreciation used, and prior depreciation taken.  It is important to duplicate this in TurboTax and continue the same method used in the past.

 

 

Level 15
Feb 11, 2023 5:30:26 AM

Agreed ... without the depreciation worksheet it will be almost impossible to recreate it from all the prior year  4562 forms.

Returning Member
Feb 21, 2023 12:29:21 PM

After viewing my 4562 form from 2021, I think I'm over my pay grade in doing this myself.  Does Turbo Tax offer support to do this for me, or do I need to get another accountant.  I just entered everything into the on-line Turbo Tax, so hoping they can get everything else from all my current work.  You help is much appreciated.  Cheers, Michael

Expert Alumni
Feb 21, 2023 12:47:47 PM

Here's some info on TurboTax Live Assistance. 

 

This link has tips for Airbnb Rentals you may find helpful. 

 

 

 

Returning Member
Feb 21, 2023 1:13:35 PM

Thanks for the links, at this point after looking at the 4562 form my account used, it might be best to have someone do that form for me.  Is there someone at TurboTax who will do the 4562 form for me?  Or at least walk me through it step by step?

 

Expert Alumni
Feb 21, 2023 1:29:29 PM
Returning Member
Feb 22, 2023 9:37:21 AM

I tried having Turbo Tax do my taxes.  I have two AirBnB's in my house and need to depreciate them.  Because of the second AirBnB, they doubled my price to do my taxes.  If I go back to  doing it myself, can I do more than one rental?  If yes, what product do I need?

Level 15
Feb 22, 2023 9:43:26 AM

Yes you can ... you would need the Premier or better if you use the ONLINE program  or you can use ANY of the downloaded/CD versions ... get Deluxe if you need a state return and Basic if you don't.

 

https://turbotax.intuit.com/personal-taxes/online/file-your-own-taxes/#see-pricing

 

https://turbotax.intuit.com/personal-taxes/cd-download/

Returning Member
Feb 22, 2023 10:01:44 AM

What do people suggest, CD version downloaded or On-Line.  I need some help with the 4562 form, I see you can get help with on-line.  Is the support the same with the CD version?

Level 15
Feb 22, 2023 10:04:45 AM

Support is the same for both versions ... only the free version has no support.   You need the depreciation worksheets from the prior year return ... if you only have the 4562 forms then contact your CPA and demand they send you the worksheets since they are part of your return and should have been included in the packet you got from them.   

Returning Member
Feb 22, 2023 10:10:58 AM

Thank you for the update.  I have 4562 form from last year.  Right now I'm on-line trying to get this form to fill it in.  However, I can't seem to bring it up.  How do I find it with the on-line version.

Expert Alumni
Feb 23, 2023 11:48:48 AM

You're going to go to the Wages and Income section and scroll down to the rental real estate section.  Enter everything in there.  

 

It has space for the assets and all the associated stuff for your air b&b business.  It will put it in the correct section and it will generate the forms (including the 4562) that you need.  

 

It's why @Critter-3 suggested that you get the worksheets from last year - you're going to need to enter a lot of information about the houses and assets that you have including prior depreciation.  All of that information is on those worksheets.  But once you have it all entered then the forms will be there.

 

@mgjerstad-yahoo- 

Returning Member
Feb 24, 2023 3:27:29 PM

I'm making progress.  Another quick question.  Right now Turbo Tax is calculating my Rental Expenses based on the % of use.  This is good for Mortgage interest and taxes.  However, I have several expenses that are 100% associated with the rental.  So it only gives me a partial deduction, is there a way to get these expenses to show at 100%?

Level 15
Feb 24, 2023 4:09:04 PM

Covering things here. CD vs Online, and the form 4562.

 

What do people suggest, CD version downloaded or On-Line. 

This is my personal opinion. If this is your first year using TurboTax, use the CD/Download version that you physically install on your Windows or MAC computer. For a first time user the online version isn't anywhere close to what I would call "user friendly".

The CD version gives you significantly more versatility. For example, with the online version, Forms Mode is not available until "AFTER" you have paid your filing fees. Once you pay, your option to start over from scratch is gone for good.

With the CD version, if you need to switch from "interview mode" to "forms mode", one simple click lets you go back and forth - and you will probably do this quite a bit as a first time user of TurboTax.

With the CD version, if you need to start over from scratch (and I'm sure you will, more than once) you simply delete the .tax2022 file located in the Documents/TurboTax directory. Then when you start the program it's "as if" you just installed it for the first time.

With the online version, you pay for each individual tax return that you file. Both federal and state.

With the CD version, you pay for the program "one" "time" and you can complete and file as many federal returns as needed. However, the IRS (not TurboTax) says you can only e-file a maximum of 5 returns. After that, you have to print, sign and mail the return to the IRS.

With the CD version for state returns, some flavors include "on free state". But you have to pay to e-file that state, and any additional state returns. You can choose to print, sign and mail the state return and you won't be charged the filing fee for that - but you will still have to purhcase the state module for each state after your "one free state".

 

Form 4562

For each rental property you own, there are two form 4562's and both of them print in landscape format. One is titled "Depreciation and Amortization Report" and the other is "Alternative Minimum Tax Report". Most likely, the first one will be the only one you need. But have the AMT report handy in case the program asks you for any AMT values.

The 4562's will have all the data you need for you to enter your rental property assets in the Assets/Depreciation section of the program. Without the 4562, you may find it rather difficult to get things set up correctly.  Not necessarily impossible...... just difficult.

Returning Member
Feb 26, 2023 11:57:52 AM

I have two AirBnB's I rent in my house.  I understand # of days used for Business.  However, when it askes how many days used for personal use what should I enter.  When the AirBnB's are not rented, we do not use them, so I assume it would be 0.  Is that correct?

Expert Alumni
Feb 26, 2023 12:23:56 PM

Yes, if you did not use the Airbnb rentals, the number of days that you would enter for personal use is 0.