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Why isn't the personal-use % being applied to Sch E certain rental expenses? TurboTax is not calculating this for car/truck, mgmt fees, or ANYTHING within Other Expenses

The "Schedule E Worksheet" has a table showing how all expenses are allocated as either reported on Sch E, vacation home loss limitation, or personal use.  The last two columns are greyed out for management fees and other expenses.  I could rationalize the property management fees since those are directly related to rental income and therefore shouldn't have anything to do with personal, but why would it not allocate the various miscellaneous expenses within Other?  It doesn't even offer the option to allocate or not, they just decide that anything you put there must have been 100% business-related??  Is there any actual IRS guidance that would support these?
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1 Reply
AnnetteB6
Expert Alumni

Why isn't the personal-use % being applied to Sch E certain rental expenses? TurboTax is not calculating this for car/truck, mgmt fees, or ANYTHING within Other Expenses

The Schedule E worksheet is used to allocate expenses before transferring the data to the Schedule E that is filed with your return.  There is no IRS guidance with regard to the Schedule E Worksheet, only the Schedule E itself.

 

The expenses that you list in the 'other' category are 100% allocated to the rental property itself because that is what TurboTax tells you to enter in that category.  If the expense should be allocated between rental and personal use, you will need to do that math before entering the expense.  

 

For a visual reference, see the screenshot below:

 

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