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posted Jun 3, 2019 12:03:19 PM

The property I rented out only 28 days in 2016 , in rental expense section, I entered one year insurance premium and total property tax paid in 2016

I assume TurboTax will allocate those expenses, is that true? or Do I have to calculate the 28 days expense by my self?

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Level 15
Jun 3, 2019 12:03:20 PM

*IF* (and that's a big *IF*) you told the program to allocate/split things for you, then enter *exactly* what the program asks for, and it takes care of it. You absolutely must pay attention to detail on each and every screen. Even when you elect to have the program do the splits for you, there are some things it can't split. So read the small print on every screen. The small print matters - BIG TIME!

Note that insurance is not split. But the program will allocate for the rental portion. Insurance for the period of time it was not a rental is not deductible anywhere.

Also, if you pay HOA fees the program can't allocate those no matter what. So you should only enter the fees paid during the time the property was classified as a rental.

Rental Property Dates & Numbers That Matter.

Date of Conversion - If this was your primary residence before, then this date is the day AFTER  you moved out.
In Service Date - This is the date a renter "could" have moved in. Usually, this date is the day you put the FOR RENT sign in the front yard.
Number of days Rented - the day count for this starts from the first day a renter "could" have moved in. That should be your "in service" date if you were asked for that. vacant periods between renters count also PROVIDED you did not live in the house for one single day during said period of vacancy.
Days of Personal Use - This number will be a big fat ZERO. Read the screen. It's asking for the number of days you lived in the property AFTER you converted it to a rental. I seriously doubt (though it is possible) that you lived in the house (or space, if renting a part of your home) as your primary residence or 2nd home, after you converted it to a rental.
Business Use Percentage. 100%. I'll put that in words so there's no doubt I didn't make a typo here. One Hundred Percent. After you converted this property or space to rental use, it was one hundred percent business use. What you used it for prior to the date of conversion doesn't count.