Question

Old house is now a rental. For mortgage interest deduction, why is turbotax adding the full year interest plus the portion of the interest when I lived there?

Forum|Forum|4 years ago
April 10, 2022
1 reply
0 views

This generates an incorrect deduction amount for the mortgage interest, it's artificially high.

TurboTax Online

ColeenD3

Did you include the date you began renting it? You can just manually prorate between Schedules E and A.

N

njbill2Author

Yes, TurboTax had asked for the date the property was turned into a rental. What I eventually did was to remove that 1098 from deductions, but left the info in the rental expenses section. That let the Schedule E Worksheet allocate part of the interest to the rental and part as personal use. That personal use amount was correctly carried over to Schedule A.

Thanks for your input.