topic I rented out a portion of my home and I entered in the percentage that was rented out, but I need to fix the percentage I entered. Where can I do that? in Investors & landlords

I rented out a portion of my home and I entered in the percentage that was rented out, but I need to fix the percentage I entered. Where can I do that?

brett-m-withers — Sun, 14 Mar 2021 20:04:49 GMT

Re: I rented out a portion of my home and I entered in the percentage that was rented out, but I ...

KathrynG3 — Sun, 14 Mar 2021 22:38:26 GMT

Return to the expense section of Schedule E to edit the Home Office as an expense section.

To do this in TurboTax, enter rental property in the search box. Select the Jump to link in the search results. If you are using your home for daycare and need to adjust the square footage, this could be reported on Schedule C, but does not appear to apply to your circumstances. For more information, see: Should I report my rental on Schedule E or Schedule C?

If you have already begun Schedule C, it must be deleted. Enter schedule c in the search box and select the Jump to link in the search results. Click the trash can icon next to your entry for Your 2020 self-employed work summary to delete it.

For more information, see:

Renting Out a Room on Airbnb or FlipKey? How Much You Owe in Taxes

2020 Publication 587: Business Use of Your Home. The simplified method is valuable because it is easy at a flat $5/square foot for exclusively dedicated space, and also because it will not impact the gain if you sold your home down the road. There is no depreciation recapture when using the simplified method.

@Carl is correct.

[Edited 03/14/2021 | 3:29 PM PST]

@brett-m-withers

Re: I rented out a portion of my home and I entered in the percentage that was rented out, but I ...

Carl — Sun, 14 Mar 2021 21:45:10 GMT

@KathrynG3 incorrectly references the SCH C. The SCH C is not used at all for residential rental real estate.

You need to start from the beginning of the Rental & Royalty Income (SCH E) section of the program, and just work through that section reviewing all the data you entered and selections you made. As you do so, you can make changes as necessary. Note that your changes do not always "stick" until you get to a screen with a DONE button on it, and you actually click the DONE button.