Mortgage Interest deduction on rental property

Forum|Forum|1 year ago
March 22, 2025
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I live in CO and have a house in AZ that I have rented out for several years. I have always been able to deduct the mortgage interest paid, but this year it is saying I can't deduct that. It basically deleted that property so I can't deduct the property taxes or insurance either. It also isn't letting me deduct my insurance on my primary residence anymore. Is this new this year or am I doing something wrong or missing something?

MindyB

Insurance is not deductible on a primary residence, that is a personal expense.

The mortgage interest for the primary residence and the rental are not to be reported in the same place. The primary residence interest is an itemized deduction on Schedule A. The interest for the rental is an expense that must be listed on Schedule E.

Here's how to enter the rental interest in TurboTax Online:

Navigate to Federal > Wages & Income > Rental Properties and Royalties (Sch E)
Edit the rental using the pencil icon
Choose Add expense or asset
Select Mortgage interest and Continue
Now Mortgage interest will appear in the list of expenses. Select the pencil icon next to it to enter.