How turbo tax calculate the percentage of the mortgage interest for the rental income on the primary residence

Forum|Forum|6 years ago
June 3, 2019
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I rent out a room in my primary residence, I would like to understand how Turbo Tax calculate the percentage of the mortgage interest, property tax, etc. Please give an example so that it helps me to know the formula. Thanks

TurboTax Free Edition Online

Best answer by PaulaM

TurboTax will calculate the amount to allocate based on the number that you input for the rental use percentage. Calculate the percentage as the square footage of room/square footage of entire home.

For example: You enter the rental use percentage as 25% and the cost of your mortgage interest is $10,000. TurboTax will allocate $2,500 to the rental side and $7,500 to the personal side. You won't enter interest again on the personal side.

You don't have to have TurboTax do the calculation. You can just enter the proportionate share yourself in both sections.

Also, under the Property Profile, indicate that you rented a part of your home on the page, Do Any of These Situations Apply to This Property?

See attachments.

PaulaMAnswer

Employee

TurboTax will calculate the amount to allocate based on the number that you input for the rental use percentage. Calculate the percentage as the square footage of room/square footage of entire home.

You don't have to have TurboTax do the calculation. You can just enter the proportionate share yourself in both sections.

Also, under the Property Profile, indicate that you rented a part of your home on the page, Do Any of These Situations Apply to This Property?

See attachments.

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Lee-NgAuthor

Thanks Paula! However, I forgot I only rented the room from Jan to Aug (244 days). How will the calculation formula looks like; please use the example above you provided. Thanks