topic Re: Schedule E property type in Get your taxes done using TurboTax

Schedule E property type

ahalverstadt — Tue, 24 Feb 2026 07:52:05 GMT

I own a single family home that has been split into two units - an upstairs unit and a downstairs unit. Both units are complete dwellings, and they have separate entrances. But, we share a single address (the city considers the property to be a single family home) and all utilities. I live in the upstairs unit and rent out the downstairs unit.

I am trying to determine how to answer the basic question of whether this is a single family or multi family home for Schedule E. I have found previous threads on this exact question but with conflicting responses. Can anyone confidently tell me which it is?

Re: Schedule E property type

Anonymous_ — Sun, 08 Oct 2023 20:30:56 GMT

It's up to with respect as to how you want to handle your scenario.

Frankly, TurboTax is not well-suited to entering the information as a whole and then having the program "do the math". In other words, you are better off doing the math (calculations) yourself and then entering those figures into the program.

Treating the house as a single unit, however, would most likely make it difficult to determine the basis of the house at such time that you sell it and/or whether you qualify for the home sale exclusion.

Re: Schedule E property type

ahalverstadt — Thu, 12 Oct 2023 03:36:41 GMT

@TAG Thank you for the help. I think you're right that it is much cleaner to classify it as multi-unit property.

I have another question about this. When I bought the house, I initially rented out both units. I later converted one of the units to my primary residence. Do I classify the permanent rental as an owner-occupied rental, even though it wasn't at first?