Duplex Partially Rented - Depreciation

Forum|Forum|4 years ago
April 15, 2022
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I'm trying to enter my duplex into TurboTax, which was partially rented.

I live in the 2-bedroom side (40%), and rent out the 3-bedroom side (60%).

In TurboTax for 2021 tax year, how do I enter this properly to be depreciated correctly?

Do I need to adjust all the numbers (purchase price, closing costs, and land) to 60% of their values?

Or will this cause other issues?

TurboTax Self Employed Online

ColeenD3

You will say that you live in a multi-family unit. You can do the math manually and just enter the rental portion of expenses on Schedule E.

Horovan VelnocAuthor

In case it helps anyone, what we ended up doing at the end of the day was this:

Selected "Renting a Unit in a Multifamily we own".

Selected "Manually calculate" when asked if we wanted TurboTax to split everything based on the proportions of what was rented. Otherwise it kept multiplying our Expenses by 60% (But not depreciation? What gives? lol).

We filtered our records to include all expenses related specifically the rented portion, then added 60% of any full-site related expenses, and entered those directly.

For the depreciation, we adjusted all data relating to the basis by 60%.

So: purchase price, closing costs, "Improvement" (buildings) basis, Land basis, etc etc was all entered as 60% of the actual values, so the TurboTax depreciation amount would be correct.

After entering everything, we went through the left menu bar:

- Tools -> Print Center -> Print returns.

Checked in Schedule E to see what it was calculating...

To double check everything was sanitary. Highly recommend printing the return to PDF first, to check numbers, then try again.

Good luck everybody!

Beware that TurboTax doesn't adjust your depreciation by 60%, only expenses.

This sucks. But maybe it'll get fixed down the road? Not holding my breath.