Sch E Expenses Input (converted to rental mid-year)

[mgottman]

I am filling out my sch E for the first time this year. First year renting and I converted my primary residence to a rental in the same year. For 4 months of the year, it was a rental. When it came to entering expenses(mortgage interest, insurance premiums, real estate taxes, HOA fees, etc) I annualized the amounts. Should I only enter the prorated amount of 4 months of expenses, or will turbo tax do this automatically since it asked for days of personal use vs rented?

[ThomasM125]

You should just enter the portion of the expenses that apply to the period of time the property was rented. You will notice on the screen that says Was this property rented for all of 2025? you are instructed to enter the days the property was rented and the personal use days during that time. There is a note on that page instructing you to not enter as personal days any days before the time the rental period started. So, there will be no allocation of expenses for the time before you started renting the property.