It doesn't matter if it is a family member you must report any amount paid to you as rental income on your return. When you claim this as rental income you are able to claim rental expenses as well. The rental income is the total amount you
receive from all sources for the rental. When you enter the information into
the program you will enter under income the total amount you received for the
rental. You will also be asked later in the program to enter in all the expenses
(including mortgage interest for the property. This will reduce your rental
income and properly calculate the profit/loss of the rental.
To enter in
your rental information, please follow the steps below:
1. Login to
your TurboTax Account
2. Click Continue your return if you have
already started a return.
3. Click on Go to Federal Taxes heading
4. Click on wages and income (you can either Choose
Jump to Full List -or I'll choose what I work on)
5. Scroll way down to Rentals
and Royalties- click on start or update
6. Follow the
interview questions and answer accordingly, you will eventually get to a screen
that will say 'Let Us Enter Your Rental Info for You' (check the last
circle to enter my rental info myself)
7. Rental Income -
click Start or Update- complete this section
8. Expenses -
click Start or Update- complete this section
9. Assets/Depreciation -
click Start or Update- complete this section
10. Vehicle
Expenses - click Start or Update- complete this section
Remember
you will need to enter in the total rent you received for the year, then you
will enter in your expenses (i.e. mortgage interest, repairs, property tax,
etc...) You are only able to deduct the mortgage interest, not the principal.
When you depreciate the cost of the rental, that will take care of the
principal part.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
