Question

Should I enter the full amount in rental expense or the prorated amount for a rental that I used also for personal use?

Forum|Forum|7 years ago
June 3, 2019
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TurboTax Self Employed Online

Employee

You must prorate. There is no deduction for time spent using the property for personal use.

There are three scenarios. One is that you were living in the home as a personal primary residence and converted to rental use. In this example, you would begin taking expenses on the date it was placed in service. You place property in service in a rental activity when it is ready and available for a specific use in that activity.

The second is vacation home. Here, you intermittently use the home for personal use when it is not being rented.

https://www.irs.gov/taxtopics/tc415.html

The third is a not-for-profit rental. You rent it for less than you could on the open market.

https://www.irs.gov/taxtopics/tc415.html

A

abulosAuthor

thank you for the quick response... on the TT software it calculates amount rented vs personal use. This I am assuming is the prorated factor. So the expenses entered such as maintenance automatically gets calculated with the proration factor? Or ... should I use this ratio to factor in my expenses in the fields. I notice if I select full time rental VS. partial rental TT changes my tax numbers.
Just need more clarification on how the software is set up.