Question

Mortgage interest on shared rental property

Forum|Forum|4 years ago
March 18, 2022
1 reply
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Hi,

I'm helping a family member by doing their taxes in turbo tax. They have a home that they share equally with a renter (charge rent and split expenses). Do you report the Mortgage interest in the rental section, in the home mortgage section, or both? Right now I have it in both sections and I feel like it's looking at it twice.

Thanks

Rental Property

D

DianeW777

TurboTax will see it twice if you entered it in both sections. You can split the amount to enter in each section an amount based on how much should be rental expense and how much is personal expense. This is my recommendation without knowing other details about your rental space.

On the rental activity be sure to split your expenses appropriately to account for utilities, insurance, repairs that affect the entire house and then any directly related expenses specifically for the rental portion should be listed at 100%.

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B

BintAuthor

Thank you for your response. I'm clear on general expenses and as you have noted I entered those at 100% for turbo tax to do the math. If it helps, they split the other expenses 50/50.

As for the mortgage interest in the "your home" section. She had a refi this year and beyond the interest, I thought I have to address the date of the new mortgage, etc. Could I just enter "zero" for the interest in the "your home' mortgage section and enter it all in the rental section, or visa versa,? Or just 50% in each section, I believe that is what you had noted?

thanks!

P

PattiF

The interest for the refi should be split as noted above with 50% for home interest on Schedule A and 50% for interest for the rental part. If there were any points from the first mortgage, they can all be expensed. These would be divided 50%/50% too.

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