Your best option is to enter the three rental units as separate Rental Properties. This allows you to enter different in-service dates (and rental days) for each unit and track income & expenses for each unit separately.
Also, if the rental status of one unit changes in the future (rented to family, converted to personal use, not rented, sold, etc.), you can report the change without affecting the other units.
Most taxpayers allocate property basis for split rental properties based on square footage or property value (if known).
If you do set up three assets, you would need to divide shared expenses between the units yourself (TurboTax doesn't handle this allocation). This includes mortgage interest and property taxes. If the units in your rental property are identical, you may report one-third of the shared costs as Rental Expenses on each Schedule E.
But if you have expenses specific to one unit (cleaning between tenants, repairs, upgrades), you would enter these separately under the appropriate unit.
Since you occupy one unit, you don't need to include that unit as a rental property until/unless you move out and convert it to a rental. Instead, report the mortgage interest and property taxes allocated to your personal residence under Deductions & Credits >> Your Home.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
