How do I report income on a rented room in my main house?

Forum|Forum|3 years ago
January 27, 2023
1 reply
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I own a house and I rented a room all last year how do I report it?

TurboTax Deluxe Online

DawnC

Employee

Rental income and Expenses are reported on Schedule E. You will have to upgrade to Premier to enter rental income.

Because you only rented a part of your home, select ''I rented out part of my home'' on the question about special situations. You will prorate expenses as they have to be divided between personal and rental expense. See Diane's linked answer for more detail on setting up the rental property and allocating the expenses in TurboTax.

Where do I enter income and expenses from a rental property?

[Edited 01/26/2023 | 7:59 PST] @ctl1966

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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.