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Go back to the Rental Properties and Royalties section
Click Update
Continue through the interview until you get to the "Rental and royalty Summary screen
Click EDIT by the rental listed
Click Update for the "Property Profile"
Continue the interview to get to the "Let Us Calculate Your Expense Deductions for You" screen
Be aware you deal with two percentages when renting out a part of your residence. Percentage of floor space and percentage of time.
The screenshot provided earlier is asking for percentage of floor space. The percentage you enter here is for the floor space that is exclusive to the renter and typically does not include common areas shared with the owner. Typically this will be less than 100%.
Percentage of time is for the time the space exclusive to the renter it was used as a rental, starting from the date it was placed in service. This will almost always be 100%. The only way it's less than 100% business use is if the owner used it for any personal reasons *after* the date it was converted to rental. What that space was used for before it was converted, doesn't count for anything.
Finally, double-check the depreciation amount, as I expect it will be wrong. In IRS Pub 946 at https://www.irs.gov/pub/irs-pdf/p946.pdf use the worksheet on page 36, and for line 6 of that worksheet table A-6 on page 71 is used.
Does your comment address the difference between:
I don't know what line Q is on the worksheet, as it's blank on mine since I don't have an owner occupied rental. But in a prior post in this thread I explained the difference between the two percentages the program asks for.
Getting those numbers right matters big time, as if either is wrong then the program will not figure the correct amount of depreciation for that first year in service.
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