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February 9, 2025
Question

How to split interest and taxes for two rental rooms?

  • February 9, 2025
  • 1 reply
  • 0 views

I rent two rooms in my house.  Each has different square footage, different rental rates, and different occupancy periods.  I can create a Schedule E entry for each room, but in doing so the personal use portion of mortgage interest and taxes is not calculated correctly.  How can I get the personal use portion for Schedule A to calculate correctly?

    1 reply

    February 9, 2025

    You can enter both rooms as one entry on your Schedule E because it is the same building- then you can designate the square footage percentage.  If the rooms were unoccupied because there was no renter while you were looking for someone new (as long as you did not stop intending to rent the room and use it for yourself), you just enter the rent you received and can continue to deduct the depreciation and expenses (because the rooms were "available for rent").  This will give you the correct amounts for your Schedule A.  

    billjansAuthor
    February 9, 2025

    I really do not understand now I can create only one Schedule E entry for both rooms when I have different expenses and rent revenue for each room.  I don't think combining expenses and revenue in one Schedule E entry will give me an accurate result.  What I would really like to do is enter the personal use portion manually on the tax and interest deduction worksheet.

    February 9, 2025

    You can made the manual entries, but you will need to use TurboTax desktop.  See How do I manually fill out my tax forms in TurboTax Desktop?  @billjans