Mortgage interest deduction on partially rented multi-family

Forum|Forum|2 years ago
February 2, 2024
2 replies
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Hello,

I have a multi-family that is 50% rental and 50% primary residence. I pay about $20K mortgage interest on the property. Per turbotax, I put $20K, which the program automatically allocates $10K to the rental, and calculates it as part of the rental net income.

Later, in the deduction section it asks did you pay a home loan in 2023? Do I input $20K, or $10K (the difference between what has been allocated previously), or $0K here?

Thank you

ThomasM125

I think you mean that you reported all of the mortgage interest on the house in the rental section of TurboTax and then went to the personal section of the program to enter itemized deductions. That is where you are seeing a question regarding your mortgage interest again. You should not enter the mortgage interest again, as it will automatically be allocated to your itemized deduction schedule A once you enter it in the rental section of TurboTax. This is assuming you choose the option to have TurboTax make the allocation while in the rental section, as it appears you have done.

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hnguyen01Author

This was super helpful, thank you so much for the help!

Carl11_2

Employee

If you elected to let the program "do the split" for you between SCH A and SCH E, then you "should" see small print on one of the screens in the mortgage interest section informing you the program already has it's share of the allocation. If that's so, then you don't enter the mortgage or any portion of it a 2nd time, as that would be double-dipping.

hnguyen01Author

Thank you - the screen is sometimes confusing but I understand it now :-)!

Carl11_2

Employee

Glad you got it now. One of my favorite saying from my dad is, "He who claims to completely understand the situation and all aspects of it, is obviously not paying attention." So confusion is a sign that you're paying attention. 🙂