On TurboTax you need to enter the house as an asset . You also need to enter any other assets you rent if they are not included in the value of the house such as appliances . When you sell , you will dispose of a business assets . Any expense you incurred for the property during the time it was up for rent or rented that is normal and necessary also qualifies as a deductible expense , ie landscaping service , snow removal , pool service , advertising , mileage you drove to deal with the property such as tofrom the property manager ' s office or the house , legal fees to deal with a tenant , etc . I recommend careful review of the instructions for Schedule E page 1 and Form 8582 . Both can be found at irs . gov under forms and publications . Publication 527 can help too . pdfp 527 . pdf ? ga 1 . 199 tel 09 tel 630