Offset the cost from the lease and rental

No, you aren't able to offset the $1,200 cost of your apartment against the $1,600 rental income even if you moved to be closer to work.

• Note: The moving expense deduction has been suspended for tax years 2018 through 2025 as a result of the Tax Cuts and Jobs Act that was signed into law in late December of 2017.
• Note: Under the Tax Cuts and Jobs Act (TCJA) that Congress passed, the unreimbursed employee expenses deduction has been suspended in tax years 2018 through 2025.

You'll need to report renal income of $1,600 for each month rented. You'll be able to deduct rental expenses like mileage, mortgage interest, property taxes, advertising, etc.

To enter income and expenses from a rental property, see the following:

Note: If your rental property is located out-of-state, make sure you first set up that state properly in Personal Info. That way, when you do your state taxes, we'll be ready to go.

To enter your rental:

1. In TurboTax, search for rentals and select the Jump to link at the top of the search results.
2. Answer Yes to the question Did you have any rental or royalty income and expenses in 2019 for property you own?
3. Follow the on-screen instructions as you proceed through the rental and royalties section.
   • We'll ask you to enter general information about your rental (like description, address, and ownership percentage).
   • Eventually, you'll come to the Rental Summary screen, which is where you enter your rental income and expenses, assets and depreciation, and vehicle expenses.

Tip: Rent is considered income in the year you received it, not the year it applies to. This means that a rent payment for the month of January 2020 collected in December 2019 is reported on your 2019 return.

If you're also filing a nonresident state return to report income from an out-of-state rental property, be sure to complete your nonresident state return before you prepare your resident state return when you get to the State Taxes section.

Related Information:

• Can I claim a security deposit?
• What kinds of rental property expenses can I deduct?
• What is rental depreciation and how does it differ from an expense?
• How do I handle capital improvements and depreciation for my rental?

Source: TurboTax FAQ