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?
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