The percentage of rental use shown on line Q of the Schedule E worksheet for a rental property is used with an owner-occupied property. The percentage of rental use indicates what portion of the total property is dedicated to the rental property.
For example, if the property is a duplex where each side is the same size in square feet and the property owner lives in one side and rents the other, the percentage of rental use would be 50%.
Another example is where a portion of the owner's home is being rented, such as a bedroom that is 10% of the total square feet of the house. The percentage of rental use, in this case, would be 10%.
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