Question

When I calculate depreciation for my home because I'm renting out only a percentage, should that percentage be factored into the calculation as is the % of time rented?

Forum|Forum|5 years ago
April 16, 2021
2 replies
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I just did the depreciation section for my house because I'm renting out about 35% of the space (basement). I've also only rented it out for 75% of the year, and TurboTax factored that in e.g.: the 10K deprecation amount was reduced to 7500 for example.

However, I do not see a way to factor in the amount of space rented out without doing some math myself and playing around with other fields.

Should I even be doing this? Or what TurboTax is doing correct and the percentage of space rented not matter?

TurboTax Premier Online

M

Mike9241

either enter 35% of cost or enter full cost and enter business use as 35% on the same form that the property is entered. (line 6)

if depreciation for a full year is 10K you don't get 75% because of the mid-month convention for rental property.

say rental started in april you will only get 8.5/12 of the $10K as the depreciation.

R

RobertT1Author

I understand; thank you.

Carl11_2

Employee

On the last screen where it asks:

Percentage of time I used this item in this business (e.g.;80%)

The question is wrong for *your* specific situation. The question should be:
Percentage of floor space used in this business

So change your entry in that box so it shows the percentage of floos space rented, and the depreciation figures will be correct then.

The program already knows the percentage of time, based on the date you told the program you placed it in service, on an earlier screen. But for this specific calculation, the program does not know the percentage of floor space. Yes, you entered that in an earlier screen. But the program used that entry for the sole purpose of figuring the amount of mortgage interest you could claim on the SCH E, and that was it.

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RobertT1Author

Carl. I ended up trying your suggestion and it worked. Note there is no place for me to specify the percentage of floor space used though.

ColeenD3

If you choose the vacation home/short term rental option, along with rent our part of my home, you will not get the screen that says, " Since you rented part of your home, would you like us to automatically divide house's expenses?"

You can select single family and still get the number of days rented question as well as the question above.