Question

Rental property

Forum|Forum|2 years ago
April 8, 2024
1 reply
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I have two rental properties in two different states that are being rented for less than fair market value. I do not have a mortgage on either property; however I pay the real estate and insurance for both. How do I report the income and expenses in turbo tax premier.

M

mglauner

You can enter your Rental Income and Expenses in the Rental section in TurboTax, to be reported on Schedule E. However, since the IRS considers rentals at below-market value to be not intended for profit, you can only deduct expenses up to the income amount.

TurboTax will ask you if you rented at FMV as you enter your rental property info.

Another option would be to report the rental income as Miscellaneous Income, and deduct the Property Tax on Schedule A.

Here's more discussion on Below Market Rentals.

Click this link for info on Fair Market Rent from HUD.