Question

Rented my home for 45 days (used it 319). Turbo tax will ratio expenses. However, I have some which are dedicated to the rental (like VRBO adveristing) which should not be ratiod. How do I enter these in the turbotax program so they are fully appl

Forum|Forum|5 years ago
October 7, 2020
1 reply
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I have rented my home for 45 days and used it for 319 days.

I'm familiar with the rents and royalty section since I also have a couple investment properties.

I understand the quicken program will do the pro-rata calculation to carve up my expenses based of the days rented and the days used myself (Utilities, tax, repairs etc). However, in renting the home I have some expense which is dedicated just to the rental. For example, I pay $499 to VRBO to list our home on their platform as an advertising expense. Similarly, we are in an HOA which requires a guest rental fee of $500. How do I enter these in the program so that these unique fees are applied against the rental income and NOT allocated between rental and pers use... since there is no personal use. Thanks, Al

Critter-3

Follow the interview screens ... WAIT for this screen to enter in rental expenses ONLY ... all the other common expenses screens will prorate automatically ... then BEFORE you file review the Sch E and it's worksheets carefully ... make changes before you file.

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Carl11_2

Employee

I did a few run throughs using different settings for the same scenario, and I can't really get any method that will work correctly. These are the parameters I used.

Primary Residence - 1 Jan - 31 Mar 2019

Residential Rental Real estate 1 Apr - 15 May 2019

Primary Residence - 16 May - 31 Dec 2019

The best scenario that worked for me was showing the property converted to rental 1 Apr with 100% business use and conversion back to personal use on 16 Mar. It required me to split the mortgage interest and property taxes myself, as well as pro-rate the insurance costs. All other expenses were 100% deductible. (I only claimed those expenses incurred for the 45 days the property was a rental, including utilities.)

Now I did see where during the initial setup process I was asked if I'd used this property for business in the past. If I select no, then no issues. But if I select yes then I'm asked for all prior depreciation taken. That number "seems" to be taken into account correctly and doesn't "appear" to mess things up. But I've not yet dived into the forms and worksheets to confirm that. Overall though, based on the numbers I see it appears to be dealing with prior business use of the property correctly.

Critter-3

WAIT WAIT WAIT A MINUTE .... this was not a vacation home where you use it sometimes and others at other times ??? This was a personal residence that only you used ... then you totally moved out for a period of time ... then the renters left and you moved back in ???? Or did you just rent out part of your home for a short time ? Is this an AirBNB situation ???