Interest deduction on primary residence with rented room

Forum|Forum|5 years ago
March 1, 2021
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Rented room in primary residence. Input mortgage interest in rental property income section. Input mortgage interest in deductions section. When checking Schedule A, it seems to have placed percentage of interest from rental section in line 8A, but full amount of mortgage interest in 8B, leading to interest income adding up to more than the total interest reported on 1098. Should I change the input in deductions section to reflect the total interest minus the rental portion of the interest?

TurboTax Basic Windows

MinhT1

Yes, you should change the mortgage interest and property taxes you claim in Deductions and credits.

When you rent out part of your home, common expenses have to be apportioned between personal use and business use (rental) of your home.

You need to calculate the percentage of business (rental) use. One common method is to divide the square footage of the rented portion by the total square footage of the house.

In the rental section, you will deduct as rental expenses the rental portion (total costs multiplied by the percentage of business use) of each common cost (such as mortgage interest, property taxes, utilities…). You also claim other costs related to the rental such as repairs and maintenance, etc..

In the personal section, you will claim in Itemized deductions the personal use portion of mortgage interest and property taxes.

Please read this IRS publication, paragraph on Renting Part of Property on page 16.

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