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Mortgage interest on Rental property

Forum|Forum|7 years ago
June 1, 2019
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In 2016, I bought a new home and rented out my previous home for 2 months. I have a Mortgage interest on the old home. Can I show the full interest payment under deductions or is it under seperate section?
Should I splitting the total mortgage interest amount?
I only have 2 houses. Primary and one rental.
Also is this same for property taxes? Property tax I paid in 2016 is for year 2015 though. So I lived in the old home for the whole 2015.
thanks for you input.

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Best answer by BillM223

You should start with Schedule E (Rental Income and Royalties) first. Enter your total mortgage interest there as well as the property tax (and your other expenses associated with renting the house). When you indicate that you rented the house out for only 2 months out of 12, TurboTax will reduce the deduction on Schedule E to 1/6th of what you entered (2 months divided by 12); then TurboTax will carry the rest of your interest and property tax over to Schedule A for you automatically.

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BillM223Answer

You should start with Schedule E (Rental Income and Royalties) first. Enter your total mortgage interest there as well as the property tax (and your other expenses associated with renting the house). When you indicate that you rented the house out for only 2 months out of 12, TurboTax will reduce the deduction on Schedule E to 1/6th of what you entered (2 months divided by 12); then TurboTax will carry the rest of your interest and property tax over to Schedule A for you automatically.

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vkazhipuAuthor

In schedule E it tell me "Enter the rental portion of mortgage interest reported to you on Form 1098. " Does that mean I calculate and enter interest portion for 2 months and 10 months I enter manually in schedule A. If then it won't match with 1098 value send by bank right? How do I do this?