Multi family owner occupied property -report taxes, mortgage premiums, interest separately?

Forum|Forum|6 years ago
June 6, 2019
1 reply
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I own 3 fam and live one of them. Should I separate 1098 information (mortgage interest, insurance premiums, taxes, etc.) between rental portion and my residence portion? Thank you for your help!

TurboTax Self Employed Online

Best answer by Marketstar

Yes, apportioning mortgage interest, property taxes, and mortgage insurance premiums between Schedule A. personal deductions and Schedule E, rental income and expenses based on floor space and days rented is exactly what you should do.

MarketstarAnswer

Employee

kstrickland0612

What about when entering the purchase price and escrow fees for the property? Also multiply all of those by your scaling factor?

For example, I have a 2 unit owner occupied property where the rental unit is 25% of the building. So I would apportion 25% of the title insurance, transfer taxes, recording fees, etc etc (everything on the settlement statement)?

AmyC

Employee

Yes, if the rental is 25% of the property, claiming 25% of the expenses is correct. Here is a list of deductible closing items, FAQ Rental Expenses | Internal Revenue Service

@kstrickland0612

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