I have a multi family property. I live in 1 unit and rent the other. Do I put my real estate taxes and mortgage interest in the rental property section only?

Forum|Forum|4 years ago
April 14, 2022
2 replies
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Do I also put the 1098 information under the Mortgage Interest and Refinancing Form? It seems like turbo tax is taking 50% of the Real Estate Taxes and Mortgage Interest that I have entered in the rental property info section.

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PatriciaV

Employee

Yes, for a multi-family rental property in which you live, enter the mortgage interest and property taxes ONLY under the Rental Property section. TurboTax will calculate how much should be reported for your personal residence. Do not enter these amounts twice.

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Drod1

I selected the option where I will enter in only the rental property expenses instead of letting Turbo tax do it for me.

So on the mortgage interest screen it asks to "Enter the rental portion of mortgage interest reported to you on Form 1098. We'll ask you to enter your personal portion later." So on this screen do I enter in the rental portion only or do I enter in the total mortgage interest? And if I do enter only the rental mortgage interest only do I check the box that "I paid more mortgage interest than is shown on my Form 1098"? Since I am only entering in the rental mortgage amount. Then do I enter the personal portion of the mortgage interest in the deductions sections and also check the amount that the mount entered is different then what is reported on the 1098?

AnnetteB6

You would enter only the rental portion on the screen asking for the rental portion of your mortgage interest.

Do not check the box stating that you paid more mortgage interest than is shown on your 1098 unless you did pay more than is reported on Form 1098. It is not asking whether you are reporting all of the Form 1098 interest on this page, it is asking whether you paid more than is shown on your form.

Then, when you enter the personal portion of your mortgage interest, you should check the box stating that the amount you are reporting is different from what is shown on your Form 1098. You will then be asked to provide an explanation for the difference where you can state that the other portion of mortgage interest is reported on Schedule E.

@Drod1

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Carl11_2

Employee

If you have selected the option that it's a multi-family unit, and that you live in one of the units, then yes. You will enter taxes and mortgage interest in the SCH E section only. The program (not you) will take care of the splits between SCH E for the rental portion, and SCH A for the personal use portion.

One thing you will need to check though, is the property insurance which is entered in the Rental Expenses section. You "may" have to pro-rate that yourself on the SCH E, since property insurance is not deductible for the personal use part. So with property insurance it's not split between SCH E and SCH A. It goes on SCH E only, and I don't know for a fact that the program will prorate the amount you enter on the SCH E.