Question about how to complete Schedule E for Rental Property Where I Live In The Front House And Rent 3 Units In A Separate Structure

[loriprl64]

I am trying to complete Schedule E and can't determine if I should put down that I live in the one of the units on the property. There are 2 structures on the property, one house (where I live) in the front, and one building with 3 rental units in the back. So, there are 4 homes all together and each have their own street number. I have always lived in the front house, but when it was purchased, it was rented out. I only rent out the 3 units in the back building. In the past, I used a tax preparer, but this year I am using TurboTax. Looks like he expensed 100% of things like the property tax on Schedule E. I feel that expenses like this, including his fee for preparation, should have only bee expensed for 75%.  In TurboTax on Schedule E, if I check the box saying I live on the property and that I rent out 75%, I will be reporting more accurate information and showing I am only taking 75% as expenses. I would appreciate if someone could confirm that this is the correct way to report expenses on Schedule E. Thanks!

[KrisD15 · Accepted solution]

Yes, that is correct. 

If the four units are on the same tax bill, you would allocate only the portion of tax paid for the rental units on Schedule E. You can claim the remaining amount for Schedule A on your personal return if you itemize deductions. 

[loriprl64]

Thank you so much for the confirmation!