Question

I live in a Duplex in one unit and rent the other Unit to tenants.Do I enter the entirety of expenses into the TurboTax fields or only 50% since I live in one unit?

Forum|Forum|4 years ago
February 6, 2022
1 reply
0 views

My understanding is any expesnes related to repairs in the unit should be entered 100% and taxes, insurance, shared utilities should be entered 50%, is that correct or does TurboTax do some magic in the background requiring the full amounts to be entered?

TurboTax Premier Online

ColeenD3

Yes, you are correct. Direct expenses for the rental are entered at 100%, while shared personal/rental expenses are 50%, Assuming the square footage is 50/50.

There is no magical way for TurboTax to handle this since you have two categories of expenses. You will have to enter all the expenses on Schedule E as appropriate.

E

elijah912Author

When accounting for depreciation (owner Occupied Duplex) in TurboTax, do I divide the purchase price in half and enter this amount into the Original Purchase Price field? The units are about the same size.

Do I also halve the escrow charges and any additional improvements on the subsequent pages?

Thanks for the help!

P

PattiF

Yes, you would divide the costs and expenses in half since the units are about the same size. You will need to enter this into Schedule E for the rental. Here is a link to a help article for entering the rental property income and expenses.

Divide any improvements for the entire building between the rental and owner-occupied unit. Also, divide the mortgage interest paid and property taxes between the two units.

If the building was purchased or refinanced in 2021, there are other expenses to consider that would be divided

Generally, deductible closing costs are those for interest, certain mortgage points, and deductible real estate taxes.

Many other settlement fees and closing costs for buying/refinancing the property become additions to your basis in the property and part of your depreciation deduction, including:

Abstract fees
Charges for installing utility services
Legal fees
Recording fees
Surveys
Transfer taxes
Title insurance
Any amounts the seller owes that you agree to pay (such as back taxes or interest, recording or mortgage fees, sales commissions, and charges for improvements or repairs).