Question

We live in a rental and bought a home in another state that we rent out the basement to our daughter

Forum|Forum|3 years ago
April 14, 2023
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My wife and I live and work in Los Angeles in a rental. We bought a home in Portland, OR and rent the basement to our daughter. The basement is approximately 20% of the square footage. She also uses the kitchen too. My wife and I live up in Portland for maybe 15% of the year. What can we write off?

TurboTax Home & Biz Windows

T

ThomasM125

You can deduct a portion of the mortgage interest, property tax, insurance, repairs and maintenace as well as a portion of the cost of the house over time.

You need to set the basement rental up as a rental property in TurboTax. You can deduct 20% of the home expenses against the rental income. You need to check the box that says I rent out part of my home on the screen that says Do any of these situations apply to this property? You will be asked to enter the percentage of the house used for the rental. That will be used to allocate your home expenses to the rental portion of the house.