mortgage interest and real estate property tax for rental conversion

Forum|Forum|3 years ago
March 26, 2023
1 reply
0 views

I converted my condo to rental in 2022. The conversion happened in Sept. I assume mortgage interest and property tax should be prorated for rental deductions.

In "rental properties and royalties" section, I am able to type in my prorated mortgage interest and property tax paid to rental only (prorated the whole year number). These number look correct in Schedule E.
However, in "Deductions & Credit" section, I am asked again about mortgage interest and property tax.

1) What kind of property do you have?

It used to be my primary home before rental conversion. Should I choose 'Primary home' for this question?
2) When asked about numbers on 1098, I assume I should prorate mortgage interest for the period it was my primary home. Therefore, I should NOT put number in 1098 directly. Should I check the box "The interest amount I entered is different than what's on my 1098"?

AnnetteB6

Yes, you would enter that you are reporting mortgage interest for your primary home.

Yes, you would check the box that the amount you are entering is different from what is reported on Form 1098. When you do this, you will also need to enter an explanation for the difference. You can then state that the remaining mortgage interest was reported on Schedule E.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"