Starting in Drake16, the Schedule E screen has been redesigned to improve functionality and data entry.
The Schedule E screen has been tabbed to allow more detail for expenses and allocation of those expenses due to multi-occupancy of the residence. On the first tab of the Schedule E screen, Property Info/Income, basic information is entered such as description, activity type, address, fair rental days, income, and carryovers. This is similar in appearance to the first part of the E screen in Drake15 and prior:
The second tab, Expenses 5-19 is used to record expenses for the rental property. There are three columns that can be used to enter and allocate expenses, however, most rental activities will only require entries in the first column, Expenses attributable to rental unit:
- Expenses attributable to rental unit (1) - Enter expenses related to ONLY the rental portion of the property.
- Expenses attributable to entire property (2) - Enter expenses as applicable to the entire property. This column is used for multi-occupancy rental units where a portion of the property is used for rental purposes and the taxpayer/spouse occupies the other portion. If this column is used, an entry will need to be made in the Taxpayer or spouse occupancy percentage box.
- Override software calculation (3) - This column is used to override the software's calculation for the expense lines (except line 18).
Note: Overrides cannot exceed the sum of the amounts in the first two columns. These overrides bypass limitations for ownership percentage, multi-occupancy percentage, and personal-use percentage. As such, use of these fields is NOT recommended, and entries should be made with caution.
Due to the redesign, when updating from 2015, detail worksheets for line 19 Other Expenses, will not be updated from the prior year. Any primary descriptions (in yellow below) will carry over, but detail worksheets for the boxes (circled in red) will not be updated: