Rent out primary residence in the summer, how to fill out Schedule E?

[TaxAsker01s]

We rent out our primary residence in the summer as a short term rental.  We rent out the whole house, and rent our own short term rental elsewhere.  Thus, 100% of the house is on rent.  In 2021, we rented it 36 days, so roughly 10%.  We paid a cleaner $620 total to clean after each guest.  When filling out our Schedule E, would we use full $620 for Cleaning and maintenance  and then 10% of the annual Homeowners Insurance, Mortgage Interest, Real Estate Taxes, and Utilities (internet, electric/gas, water)?  For example, if our annual Mortgage Interest is $5,000, would I put $500 on the Schedule E?

It's important to note that we do a Standard deduction, so not filling out a Schedule A.

[AmeliesUncle]

The program will ask you for the number of personal days and the number of rental days, and will prorate the expenses based on that.  Just be sure to check Schedule E to make sure the numbers are showing up correctly.

[TaxAsker01s]

Hi @AmeliesUncle ,

Thanks for the response!  Yes, I see that it prorates based on personal days and rental days.  To clarify, the question is since I only pay a cleaner to clean after each guest during the short time I rent it out, can I report the full $620?  Perhaps Cleaning and maintenance is the wrong area to report this as that refers to routine cleanings to up keep the property.  Should I report this under Other as CLENAER FEES?  I get prorating things like Homeowners Insurance, Mortgage Interest, Real Estate Taxes, and Utilities.  However, the $620 for cleaning fees is a 100% direct rental expense.  Thus, shouldn't I be able to deduct the full amount?  I'm sure others in my positions are wondering as well, so be great to a clear answer on this.

Thanks again!

[Anonymous_ · Accepted solution]

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@TaxAsker01s wrote:

Thus, shouldn't I be able to deduct the full amount?

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Yes, you should under most circumstances. Unfortunately, TurboTax makes certain assumptions, some of which are unwarranted (while others are), and repairs are programmed to be prorated.

If you have expenses that TurboTax automatically prorates between rental and personal use, but should be allocated solely to rental use, then you will have to enter those expenses as "miscellaneous".

[barrons185a]

When TaxAsker inputs depreciation data, with the 36 days it was rented and assuming it ended 8/31/2021, would they answer "Yes" or "No" to the question "Have you used this item 100% of the time for this business"

If it is answered as "No", TurboTax defaults to 9.86% business use for 2021 (36 days) and will then only calculate 1 month of depreciation on 9.86% of the cost basis.

If it is answered "Yes", TT will depreciate 100% of the cost basis for the 36 days it was rented (adjusted for MM convention), which appears more appropriate.

If there was personal use within the 36 days of rental, it seems like that is what this question would be intending to cover.