Mortgage interest leftover from Schedule E not showing up on Schedule A for part time rental

Forum|Forum|6 years ago
March 14, 2020
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I have a second home that is used 41 days as vacation rental.

Leftover, non-deducted Mortgage interest and Property Taxes from Schedule E are supposed to automatically be applied to the deductions on Schedule A. Here's the Turbotax message from the Mortgage Interest page:

I followed the instructions, but the remainder of the Mortgage Interest is not showing up on Schedule A, whereas the prorated Property Taxes do show up there.

Any idea whether this is a bug or if it is represented elsewhere for Mortgage Interest. A TurboTax rep just walked me through manually adding the 1098 which would end up double counting. I don't need a CPA, I just need someone to tell me if this is a bug or to point me to where I can verify that this is captured since I can't access the forms from the online version.

Thanks!

ReginaM

No, there is not a bug, the best way to make sure that TurboTax is calculating this correctly is to make sure that all questions in regards to your rental properties are entered correctly. When you have a vacation home that you are renting out, follow these steps in TurboTax:

While in your Tax Home,
Select Rental Properties,
Select Go to Schedule E,
Follow through the on screen prompts until you see your Rental Properties,
Select Edit next to your vacation home,
Select Update next to expenses.
Select Walk me through everything,
Follow through the on screen prompts until you get to Was this property rented for all of 2019? Answer No.
Answer the question on how many days the property was rented at fair market value.

By answering these questions, TurboTax will adjust the % of your Mortgage Interest and Property Taxes and reflect them on your Schedule A.

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anne

Employee

Regina I did exactly the steps you list below but I still don't see the mortgage interest transferring over to my schedule a . On the Schedule E Worksheet it shows the amount that is personal for mortgage, real estate taxes etc. and on the schedule e worksheet schedule A smart worksheet it shows the real estate taxes portion but nothing for mortgage interest. I max out on the 10K for real estate taxes so does nothing for me there ,but the mortgage piece should not be an issue... (not over limits on mortgage amt for two homes). Any other ideas...I would think it would add to my mortgage amt from my principal home but it does not..thanks

KarenM90

If you did not enter any personal use days, TurboTax will not consider it a 2nd home and won't transfer over the excess interest.

Right under the days rented at fair market value, be sure to enter the days that you used it as your 2nd home. (The days entered for personal use should be the remaining number of the days not rented.)

If you are still having this issue, please try deleting that mortgage interest and going back through the rental questions all over again.

@anne

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