Is it possible to add a residential rental property to a business in TurboTax Online?

[mrksmb]

My wife and I own a short-term rental business, each spending 100+ hours a year on it.

We figured out this needs to be created as a business in TurboTax Online, with the rental properties being added as assets.

However, when we add a real estate property to the business, it only allows us to select the nonresidential property type (with 39 years depreciation timeframe). Our rental properties are residential, however, and need to use the 27.5 year time frame. Is this a limitation with TurboTax Online and is only possible in TurboTax Desktop?

[tagteam]

If this is a business that would be reported on Schedule C, then you need to upgrade to TurboTax Premium if you're using an online version of TurboTax.

[mrksmb]

I'm already using the Premium version but it does not allow me to select the residential property option.

The only way I could figure out how to do this is purchase TurboTax Business Desktop, import my data there (that was pretty easy after logging into my Intuit account) and then switching to the forms mode where you can adjust the type of property on the Asset Entry worksheet under the Schedule C.

I don't think there is a forms mode like this for TurboTax Online.

[tagteam]

If your wife and you both own and operate this rental business (as a short-term rental with services performed), then it is likely you need to file a 1065 as a partnership (unless you own the rental business as community property in a community property state).

[tagteam]

Do you and/or your wife provide substantial services to your renters?

See https://www.irs.gov/instructions/i1040se#en_US_2023_publink24332td0e1083