How to Report Personal vs. Rental Use for Multi-Family Property in FreeTaxUSA?
I own a multi-family property where I live on the 1st and 2nd floors, and I rent out the 3rd floor.
When the software asks about the number of days for personal use vs. rental use, I’m unsure how to handle it since the entire property has 365 days in a year. Here’s how I’m using it: I use the 1st and 2nd floors for personal use, 365 days a year. And I rent out the 3rd floor to tenants, 365 days a year.
The system won’t allow me to enter 365 days for both because it exceeds the total days in a year. Should I file each unit separately? In my case, should I only file a Schedule E for Floor 3, and then manually deduct 1/3 of the expenses for the entire property? In this case, I don't need to do anything for Floor 1&2 since they are not used for rental. The confusion here is they are part of the rental multifamily house.
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Did anyone responded to your question?? im going thru the same issue.
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Just focus on the unit you rent out. So if your tenant rented your property 365 days, then put 365. You don't need to account for your usage of the property unless you occupied the unit rented out to your tenants
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Hi luis,
Usernamechecksout is right. When reporting rental income from a property where you live in a portion and rent out a portion, you will generally want to treat the rented portion as if it were a separate property as you answer the questions on the Schedule E screens. When you are asked about personal use of the property, it is referring to personal use of the rented portion of the property.
There's a great article on our Community you may want to check out for more information. It discusses renting out a room or part of your house.
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