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If a client rents out 3 rooms in their home, Do i report each room rental on a separate Schedule E?

karteroko
Level 2

Client rents out 3 rooms, each room was rented out for different total days for the year. The start date in renting each room are different also. Should i prepare 3 separate schedule E? Or can i just report them all in a single Schedule E? Thanks for the help.

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TaxGuyBill
Level 15

If one or more rooms will ever have personal use and/or be converted back to personal (while the others are still rented), I would keep it as three different properties with three different Schedule E worksheets.

If they will all be 100% rental for the long term, or if they are converted to personal use they ALL will be converted to personal use, I would put everything on one Schedule E worksheet.

As for depreciation:  In the first situation above, use three different worksheets.  The "placed in service" date is when it was first AVAILABLE for rental.

In the second situation above:  If the rooms were AVAILABLE at different times, technically you should do three different worksheets.  However, due to the very minor difference, I suspect I would just lump it all onto one worksheet.  CAGMC.

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BobKamman
Level 14

So we know the start dates were different, because you told us.  Were all the rooms still rented, or available for rent, on December 31?  By "start date" do you mean when the first tenant moved in, or when it was first advertised?  And are you sure this belongs on Schedule E?  Are these Airbnb-type short-term occupancy deals that belong on Schedule C?  

karteroko
Level 2

Hi! The rooms are for normal renting and not AirBNB. They were rented 306, 366 and 145 days respectively for 2020. My reference to the start date is for depreciation purposes. There was no personal use even when not rented. Thanks for the help.

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sjrcpa
Level 15

Were they all held out/available to rent on Day 1?


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TaxGuyBill
Level 15

If one or more rooms will ever have personal use and/or be converted back to personal (while the others are still rented), I would keep it as three different properties with three different Schedule E worksheets.

If they will all be 100% rental for the long term, or if they are converted to personal use they ALL will be converted to personal use, I would put everything on one Schedule E worksheet.

As for depreciation:  In the first situation above, use three different worksheets.  The "placed in service" date is when it was first AVAILABLE for rental.

In the second situation above:  If the rooms were AVAILABLE at different times, technically you should do three different worksheets.  However, due to the very minor difference, I suspect I would just lump it all onto one worksheet.  CAGMC.

View solution in original post

dkh
Level 11

Are these rooms rented out for less than 15 days per year - like for local college football games  ?  

Special rules exist for this type of rental income/expenses - not reportable.

TaxGuyBill
Level 15

What about personal use?  Were they used for personal use after they were available for rent?

The more details you can provide about the situation, the better we can help you.