Rental Property Expenses for S-Corporations & Partnerships Do Not Exclude Personal Use Time
When a Rental property is used for ‘Personal Use’ during the year, some expenses may need to be reduced based on the number of days the property was used for ‘Personal Use.’
TurboTax Business will not reduce any expense for the percentage of time the rental was used for ‘Personal Use.'
Only the 'Business Use' percentage should be entered in the program.
Who Does This Affect?
If your 1120S or 1041 include both of the following you may be impacted by this issue.