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erikafrancoa
New Member

Questions about schedule E, I converted my property to a rental how do I divide the expenses?

The property was used as my residence, when I moved out it took me 1 week cleaning and painting before posting for rent, it was empty for couple months and then it was rented. How do I divide the expenses? number of days since I posted for rent/total of days in the year? Thanks
1 Best answer

Accepted Solutions
DianeW
Expert Alumni

Questions about schedule E, I converted my property to a rental how do I divide the expenses?

When you enter the rental property answer the appropriate questions on the situation page. Make the selection that it was converted from personal use to business use, also that 2016 is the first year it was rented.

The date available will be the first day you held it out as open for rent regardless of when a tenant began to rent it out. TurboTax will ask you the days rented and personal days and provide direction to enter your expenses for the rental and the personal periods.   For mortgage interest and property taxes you can prorate for the number of months for each period.

  • While you are logged into your TurboTax Premier account start here.
    • My Account > Tools > Topic Search > Type rental > Go
    • Click the screenshots attached to enlarge and view for assistance.

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3 Replies
DianeW
Expert Alumni

Questions about schedule E, I converted my property to a rental how do I divide the expenses?

When you enter the rental property answer the appropriate questions on the situation page. Make the selection that it was converted from personal use to business use, also that 2016 is the first year it was rented.

The date available will be the first day you held it out as open for rent regardless of when a tenant began to rent it out. TurboTax will ask you the days rented and personal days and provide direction to enter your expenses for the rental and the personal periods.   For mortgage interest and property taxes you can prorate for the number of months for each period.

  • While you are logged into your TurboTax Premier account start here.
    • My Account > Tools > Topic Search > Type rental > Go
    • Click the screenshots attached to enlarge and view for assistance.
erikafrancoa
New Member

Questions about schedule E, I converted my property to a rental how do I divide the expenses?

I selected the option as you said, but when the software ask for the prorated expenses it doesnt provide specific guidance. Lets say I used it for 300 days, made repairs for 10 days, was available for rent 56 days of which was rented 30. Would the personal days will include the repairs (310)? and the expenses for rent would be the equivalent of the 56 days? Thanks
DianeW
Expert Alumni

Questions about schedule E, I converted my property to a rental how do I divide the expenses?

Yes, assuming it was not available for rent during the 10 days of repair.
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