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Dividing home expenses for Self Employed 9-month home office deduction and Schedule E 3-month rental of primary residence

Forum|Forum|4 years ago
March 30, 2022
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Hi, I'd love help on this - I'm prorating my expenses for my self employed home office deductions vs. 3 months of expenses associated with renting out my residence for the summer. I'm just inputing the prorated self employed amounts right now and expect to find Schedule E inputs for the 3-month expenses of prop ins, taxes, utilities, etc. (first time using TurboTax Desktop Home & Business). My question is depreciation - any feedback as to how this software works with this situation? I don't want to double count the depreciation and I itemize what I don't use on Schedule C.

Best answer by AnnetteB6

The basis for depreciation should be the same in both Schedule C and Schedule E with regard to the house. The difference will be the dates placed in service and the percentage of business use.

During the time that the house was rented, the percentage of business use will be 100% (unless the tenants did not have access to your home office space).

For your home office, the percentage of business use will be based on the square feet of your office versus the whole house, prorated by the number of months of use during 2021.

Pay close attention as you enter the depreciation in each section. In general, TurboTax may not do the math for you for your special situation.

@TeaLeaves22

A

AnnetteB6Answer

The basis for depreciation should be the same in both Schedule C and Schedule E with regard to the house. The difference will be the dates placed in service and the percentage of business use.

During the time that the house was rented, the percentage of business use will be 100% (unless the tenants did not have access to your home office space).

For your home office, the percentage of business use will be based on the square feet of your office versus the whole house, prorated by the number of months of use during 2021.

Pay close attention as you enter the depreciation in each section. In general, TurboTax may not do the math for you for your special situation.

@TeaLeaves22

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