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dividing mortgage interests between rental and personal

Forum|Forum|4 years ago
April 13, 2022
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I lived in my home for 7 months of the year and I am renting it at fair market value in the other 5 months. I am dividing my mortgage interests accordingly an d reporting some in the personal section and some in the rental section.

So, under the rental section, I entered the corresponding mortgage interests, which do not correspond to my 1098 as they are only for 5 months. Do I need to check the box that says "I paid more mortgage interest than is shown on my form 1098" on each the rental section and the personal sections, and then explain why on the next screen? (Image below) And then would I do the same thing in the personal section?

Or do I NOT need to explain anything as both interests, together, correspond to my 1098?

Thank you!

Best answer by RaifH

No, do not click that box in the rental section. Instead, in the personal deductions screen, you can select the box that says The interest amount I entered is different than what's on my 1098 under the Box 1 Mortgage Interest. You can attach a statement to your return that says something along the lines of "The remainder of the mortgage interest and property taxes are being used as a rental expense for the period of August 1 - December 31, 2021."

R

RaifHAnswer

No, do not click that box in the rental section. Instead, in the personal deductions screen, you can select the box that says The interest amount I entered is different than what's on my 1098 under the Box 1 Mortgage Interest. You can attach a statement to your return that says something along the lines of "The remainder of the mortgage interest and property taxes are being used as a rental expense for the period of August 1 - December 31, 2021."