On Schedule E under the expenses section, if you are renting a portion of your home, does TurboTax auto calculate the amount based on the sq ft or room percentage?

Forum|Forum|3 years ago
March 10, 2023
1 reply
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I would like to know if I need to input the rental portion amount myself or if TurboTax does that based on how many days the guest suite was rented out that year.

TurboTax Self Employed Online

AnnetteB6

When you see the option to let TurboTax do the math for you in the rental income and expenses section, it will use the percentage of the home that is being rented out as the basis for the calculations. It does not take into account the fact that the space was only rented for part of the year.

When you have two separate situations where the expenses need to be prorated -- one for the portion of the home being rented, and one for the number of days it was rented -- it may be better to do the math yourself just to be certain of what expenses you are deducting.

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MickeyP

Could you please explain how to adjust the option to let TurboTax do the math for you in the rental income and expenses section? I did not see that option while completing the section.

TurboTax is currently prorating all the expense categories I have entered based on the number of days rented, but some expenses are 100% rental and should not be prorated. Is there any option to choose the calculation percentage for each expense category?

PatriciaV

Employee

The option to have TurboTax do the math is offered if you check the box for "I rent out part of my home" on the page "Do Any of These Situations Apply to This Property?" This question is found under the Property Profile for the Rental Property.

As AnnetteB6 mentioned above, if you have a mix of expense allocations (part of home, part of the year, etc.), you must do the calculations yourself. TurboTax cannot handle calculations for individual expenses.

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