Methods for rental percentages
These are the methods for entering rental percentages.
Ownership
This percentage affects the total amount of income or loss. Enter 100 percent of the income and expenses to apply the ownership percentage to the bottom line.
Enter assets for this activity in the asset module at full value. Don't enter a business use percent. Make sure you enter sale information at full value, because the application also applies the ownership percentage to sale information from From 4797, 6252, or 8824.
Business use
If the property is a duplex or similar property and only a portion is rented, enter the percent used for business.
This percentage affects the individual amount of expense that you enter in the Rent screen. Enter each specific expense amount at 100 percent. The business use percentage reduces each expense item.
note
Exception: advertising, commissions, depreciation, and management fees aren't reduced by a business ownership percentage.
In addition, you can also apply specific different percentages to expense items in the
Percentage
columns next to each corresponding expense amount field.Only the business portion of expenses are reported on Schedule E. The business use percentage applies to all expense items except advertising, auto from asset module, commissions, depreciation, and management fees.
If you enter assets for this activity in the asset module, enter the assets at their reduced business use value.
If you enter both an ownership percentage and a business use percentage, the application 1st applies the business use percentage to expense items that arrive at a net profit. Then it applies the ownership percentage to the entire net income.
Expense
The percentages in the
Expenses
section of the Rent screen override the business use percentage for the expense next to the Percentage
field only.Vacation home/personal use
The application calculates this percentage based on your entries on the Rent-3 screen, the number of days the property was personally used or rented, or the personal use percentage (force). It also reduces the deductible amount on Schedule E by the personal use percentage.
Enter assets at value if you enter this activity in the asset module.
- Go to theAssettab.
- SelectSetup, thenActivity.
- SelectVacation Home Percentageto enter the days and calculate the percentage.
