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Confirming how to hand depreciation for renting a portion of our home

Hi,

 

We are renting an Accessory Dwelliing Unit basement apartment that is approximately 30% of the square footage of our home. I understand that I need to prorate expenses such as utilities, insurance, and mortgage interest. 

 

Do I do the same for the depreciation- basis cost?  Do I adjust for the amount used by the apartment?  Thanks for any insight on how to handle the depreciation.

 

 

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1 Reply
MinhT1
Expert Alumni

Confirming how to hand depreciation for renting a portion of our home

For depreciation of the rented portion of your home, you enter the rented portion as a Residential real estate asset valued at the cost basis of your home (excluding land) multiplied by the prorated rental percentage.

 

TurboTax will calculate the depreciation expense and insert it as a rental expense.

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