Does rental income from basement suite in principal residence considered self employed. Turbo tax software wants me to file my return as self employed. Is this correct ?

Yes this is correct as seen in our TurboTax article Claiming Rental Income: 

TurboTax Self-Employed offers an easy step-by-step process to claim your rental income and expenses. The software helps you fill the T776 form schedule 3 with your income tax return.

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