topic I moved out of my house in 2018 into a condo due to health issues. I went my house to my son at less than market rent. Am I allowed to depreciate the house? Should I? in Investors & landlords https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/i-moved-out-of-my-house-in-2018-into-a-condo-due-to-health-issues-i-went-my-house-to-my-son-at-less/01/239523#M9230 Sat, 01 Jun 2019 19:43:04 GMT vornwillis 2019-06-01T19:43:04Z I moved out of my house in 2018 into a condo due to health issues. I went my house to my son at less than market rent. Am I allowed to depreciate the house? Should I? https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/i-moved-out-of-my-house-in-2018-into-a-condo-due-to-health-issues-i-went-my-house-to-my-son-at-less/01/239523#M9230 Sat, 01 Jun 2019 19:43:04 GMT https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/i-moved-out-of-my-house-in-2018-into-a-condo-due-to-health-issues-i-went-my-house-to-my-son-at-less/01/239523#M9230 vornwillis 2019-06-01T19:43:04Z No you are not allowed to depreciate your house as you ar... https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/no-you-are-not-allowed-to-depreciate-your-house-as-you-ar/01/239538#M9234 <P> <B>No you are not allowed to depreciate your house as you are renting at below market value.</B> </P><P>If you rent your property below fair market value, the IRS considers that you do not rent your property to make a profit.&nbsp; You are not allowed to use Schedule E to claim rental income and expenses.&nbsp; If you are renting your first or second home you can deduct mortgage interest on Schedule A.&nbsp; You can also deduct property taxes on Schedule A as part of your itemized deductions.<BR /></P><P>Instead you need to enter your rental income as Miscellaneous Income.</P><P>Once you are in your return:</P><OL> <LI>Click on Federal Taxes at the top of the screen</LI> <LI>Click on Wages &amp; Income</LI> <LI>Scroll all the way down to Less Common Income</LI> <LI>Scroll down to Miscellaneous Income</LI> <LI>Click on Start</LI> <LI>Click on Other reportable income</LI> <LI>Enter description of rental income and enter rental amount.<BR /> </LI> </OL><P> </P><P>Please refer to this IRS document , especially the section on Not Renting for Profit on page 16 on how to report income and expenses:</P> <P> <A rel="nofollow" href="https://www.irs.gov/pub/irs-pdf/p527.pdf" target="_blank">https://www.irs.gov/pub/irs-pdf/p527.pdf </A> </P> <BR /><BR /> Sat, 01 Jun 2019 19:43:05 GMT https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/no-you-are-not-allowed-to-depreciate-your-house-as-you-ar/01/239538#M9234 KarenJ 2019-06-01T19:43:05Z