- How to Enter Rental Property Information
How to Enter Rental Property Information
Owning a rental property is a great way to diversify your investment portfolio and take advantage of other tax deductions available to you. You'll report any income and expenses from your rental property on Schedule E - Supplemental Income & Loss. You'll also file a Form 4562 - Depreciation and Amortization so that you can claim an depreciation deduction on your rental property.
What is rental income?
Rental income is income you receive from renting a home, condominium, or other residential property that you own. It can also be income you receive from someone who simply rents a room from you. Whenever you rent property that you own, you will be able to take advantage of deductions for many of the expenses that you incur while you own the property.
What expenses can I deduct from rental income?
You can deduct the following expenses related to the property from the rental income you receive:
- Real Estate taxes
- Depreciation on the building or unit
- Depreciation on the appliances and furniture
- Management expenses
- Maintenance and repair expenses
- Salaries and wages
- Traveling expenses to visit the property
- Legal fees
- Mortgage interest on the property
- Insurance premiums
- Tax return preparation
- Lease cancellation cost
We recommend that you consult your tax professional for other expenses that you may be able to deduct from your rental property income.
How do I enter rental property information?
You can enter information about your rental property in the TurboTax Premier and TurboTax Home & Business products.
In the TurboTax Interview:
- Select the Federal Taxes tab, then select Income.
- In TurboTax Home & Business, select the Business tab, then select Business Income & Expenses.
- In the Your Income screen, select the Select Specific Topics button.
- In the Your Income screen, select Rentals and Royalties, then select the Start button for "Rentals and Royalties."
- Follow the on-screen instructions in the TurboTax Interview to enter all information about you and the property you own. You'll also enter your expenses, i.e. deductions, for the property in this portion of the Interview.
- If you have a tax-related question about an income or deduction item you're entering into TurboTax, try searching our Support KnowledgeBase, or visit the IRS web site for more information about residential rental property including Publication 527.
How do I enter the sale of rental property?
You'll enter information about your rental property in the TurboTax Premier and TurboTax Home & Business products:
- Select the Federal Taxes tab, then select Income.
- In TurboTax Home & Business, select the Business tab, then select Business Income & Expenses.
- In the Your Income screen, select the Select Specific Topics button.
- In the Your Income screen, select Business Income and Expenses, then select the Start button for "Sale of Business Property."
- In the Any Other Property Sales screen, select the option for "Sales of business or rental property that you haven't already reported."
- Follow the on-screen instructions.
- In the Sales of Business or Rental Property screen, you'll enter:
- Property description
- Date acquired
- Date sold
- Sales price
- Cost basis
- Depreciation
- Follow the on-screen instructions.
