I have a property that is 50% rental and 50% personal use in 2022. How do I change the business usage for depreciation to 50% from 100%. Turbotax would not allow me to change it in form 4562. Thank you.
Change the business use percentage in the Asset/Depreciation section to adjust your depreciation.
Go to your property and change the business percentage to 50% from 100%.
I will say, why does turbotax ask the number of rental and personal days. They don't incorporate the information into the tax calculations for either business expenses or depreciation.
TurboTax uses revenue versus personal days to split certain common expenses such as mortgage interest and property taxes. For other expenses, enter only the amount used for business.
IRS says:
If you use the dwelling unit for both rental and personal purposes, you generally must divide your total expenses between the rental use and the personal use based on the number of days used for each purpose.
You won't be able to deduct your rental expense in excess of the gross rental income limitation (your gross rental income less the rental portion of mortgage interest, real estate taxes, casualty losses, and rental expenses like realtors' fees and advertising costs).
However, you may be able to carry forward some of these rental expenses to the next year, subject to the gross rental income limitation for that year.
Topic No. 415 Renting Residential and Vacation Property