I have rental income from mother-in-law unit of my house where I also live in. I have also upgraded mother-in-law suite and put in new floor. How shall I enter income/expense/depreciation information in Turbo-tax (home & business version)?
Thanks in advance,
You have a multi-family home. You will need to prorate expenses between the personal and rental portions. Any improvements you made to the rental portion are not prorated. They belong exclusively to the rental. Depreciation is also just on the business end.
So, if the original house was one unit, and now there are 2 separate living spaces, do I prorate the purchase price, house improvements, purchase expenses, etc? Also, we have refinanced a couple of times since the original purchase - once to create the MIL unit although that was not this year. Any suggestions on how to handle these issues?
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