Can a first time homeowner with an fha loan have a renter? The homeowner lives in the house.

[PatriciaV · Accepted solution]

Yes, as a first-time homeowner, you may rent out a portion of your home. Income and expenses from renting a room in your home may be reported on your tax return using Schedule E.

If you rent part of your property, you must divide certain expenses between the part of the property used for rental purposes and the part of the property used for personal purposes, as though you actually had two separate pieces of property.

You do not have to divide the expenses that belong only to the rental part of your property.

You can use any reasonable method for dividing the expense. The most common methods for dividing an expense are based on the number of rooms in your home or based on the square footage of your home.

The easiest way to find this section of TurboTax is to use the Search/Find box at the top right side of the TurboTax header. Click on the magnifying glass, type in "schedule e", hit Enter, and click on "jump to schedule e" to go directly to beginning of this topic.

See also:

Where do I enter income and expenses from a rental property?

How do I handle capital improvements and depreciation for my rental?