Can I enter the rental income received from a tenant living in my home I also own and occupy at the same time? If so, where does this go? Are there any forms needed?

Forum|Forum|3 years ago
February 15, 2023
2 replies
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Would this be Less Common Income?

TurboTax Deluxe Online

Best answer by HopeS

No, your rental income should be entered on Schedule E instead of in Less Common Income

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:

Open or continue your return, if you haven’t already
Locate the Search bar in the upper right of your screen. Search for rentals and select the Jump to link at the top of the search results
Answer Yes to the question Did you have any income from rentals or royalties?
On the next screen, Let's see if you're a real estate professional, select any options that apply to you.
On the screen What are you here to report?, select Rental property and Continue
- If you have more than one rental property to report, no problem—just start with one, and we’ll come back to the other one(s) later

Review the additional guidance provided below:

Where to Enter Income and Expenses for Rental Property

How to Claim Income from Renting a Room

@jamessciortino1

HopeSAnswer

No, your rental income should be entered on Schedule E instead of in Less Common Income

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:

Open or continue your return, if you haven’t already
Locate the Search bar in the upper right of your screen. Search for rentals and select the Jump to link at the top of the search results
Answer Yes to the question Did you have any income from rentals or royalties?
On the next screen, Let's see if you're a real estate professional, select any options that apply to you.
On the screen What are you here to report?, select Rental property and Continue
- If you have more than one rental property to report, no problem—just start with one, and we’ll come back to the other one(s) later

Review the additional guidance provided below:

Where to Enter Income and Expenses for Rental Property

How to Claim Income from Renting a Room

@jamessciortino1

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Carl11_2

Employee

It all gets entered in the Rental & ROyalty Income (SCH E) section of the program. Make "SURE" you select the option to indicate you are renting a part of your home. Otherwise, things will be all wrong. Also, if 2022 is the first year you are renting a part of your home, double-check the first year depreciation amount. Chances, are it will be wrong. If so, I'll show you how to correct it without disabling the ability to e-file.

Hal_Al

Employee

If this is merely a cost sharing arrangement where the amount paid is below fair market rental, there would be no reportable income to you. If the “rent” amount is fair market value, or more, there is still some question as to whether you even have to report it, as it almost always comes out zero. Most people take the attitude that it is not income; it's just room mates sharing expenses and ignore it. Family, as opposed to unrelated roommates, makes that position stronger.

What you are NOT allowed to do, because it is your own home (you have "personal use") is claim a loss from this activity, to offset other income. Because of the "personal use rule", your deductions are limited to your income. Net effect ZERO.