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April 3, 2023
Question

Does it matter that my rental is 25% of my total sq footage? I used it 100% of the year for a rental, but only 25% of the house was used for the renter?

  • April 3, 2023
  • 2 replies
  • 0 views
I rent 25% of my house out to a tenant. I am claiming the rental income, but am struggling to figure out the asset deduction properly. I paid 145k in 1988 for the house, starting renting it in 1999, tenant has lived there 100% of the time since moving in, but only 25% of the residence is used for the rental income, the other 75% is my personal space.

2 replies

April 3, 2023

Enter 25% of the 145K you paid as 'Rental Asset'.  This will calculate the Depreciation amount for you correctly each year.

 

In the Property Profile, when you enter that 'you rent part of your home' and that is 25%, TurboTax will calculate the rental portion of expenses for you on Schedule E, if you choose that option. 

 

If you make a capital improvement (such as a new roof, for example), enter 25% of the cost as an Asset to Depreciate.  TurboTax calculates depreciation based on the amount that you enter.

 

Here's more info on Rental Property Depreciation.

 

@proud2b-rt-gmail 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

April 4, 2023

just as simple enter 100% of the cost and then enter business use as 25%

also check owner-occupied rental . 

and enter 25% as % rental use this way personal portion of mortgage interest and taxes will transfer to schedule A. and rental portion of other expenses will be calculated automatically if you enter there full amount (TurboTax will report 25% of those expenses as rental.  this saves you the trouble of computing 25% of all expenses for the rental. you may have to work with mortgage interest if the 75% of the principal balance exceed the mortgage debt limit