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Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

Question

What are the methods for entering rental percentages in Screen Rent?

Answer

The following are various methods for entering rental percentages.

• Ownership percentage: This percentage affects only the total amount of income or loss. Enter 100 percent of the income and expenses, and UltraTax CS applies the ownership percentage to the bottom line.

  If assets for this activity are entered in the asset module, enter them at full value. Do not enter a business use percent in the asset module for such assets. Also enter sale information at full value. UltraTax CS applies the ownership percentage to sale information that is reported on Form 4797, 6252, or 8824.

• Business use percentage: If the property is a duplex or similar type property and only a portion is rented, enter the percent used for business. This percentage affects each individual amount of expense that you enter in Screen Rent. Enter each specific expense amount at 100 percent. The business use percentage reduces each expense item (the exception to this is that advertising, commissions, depreciation, and management fees are not reduced by a business ownership percentage). In addition, you also have the option to 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 is applied 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, UltraTax CS first applies the business use percentage to each expense item to arrive at a net profit and then applies the ownership percentage to the entire net income.

• Expense Percentages: The percentages in the Expenses section of Screen Rent override the business use percentage for the expense to the left of that Percentage field only.

• Vacation home/Personal use percentage: This percentage is calculated by UltraTax CS based on your entries in the Vacation Home Information section of Screen Rent-2, the number of days the property was personally used or rented, or the personal use percentage (force).

  UltraTax CS reduces the deductible amount on Schedule E by the personal use percentage.

  If you enter this activity in the asset module, enter the assets at value. While on the Asset tab, choose Setup > Activity and click the Vacation Home Percentage button to enter the days to calculate the vacation home/personal use percentage.

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