Where to report rental property mortgage interest and tax info?

Forum|Forum|6 years ago
June 3, 2019
2 replies
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I have added it under Rental section under Wages and Income. Do I need to add it again under "Mortgage deduction summary". Usually Turbo Tax says do not include info for rental property on this form but I don't see anything under Mortgage deduction summary.

Similarly under "Enter any additional property tax you paid in 2016", there is a note "Important: Don't enter property taxes for rental property here. Enter them with your rental expenses."

But there is also field "Additional homes or land". I am guessing I don't need to add rental property tax here.

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Best answer by PaulaM

If your property was rented all year and you never lived in it, then enter the mortgage interest and the property taxes associated with it, under the Rental property section. Do not enter under the personal side at all.

If you rented a part of your home, or converted your home from personal to rental, then you would need to allocate the proportionate share between the two sections.

Ex: Lived in home for 9 months and rental for 3 months. Allocate 75% of interest/taxes as a personal deduction and 25% as a rental deduction. Navigate to each section to enter their proportionate share.

PaulaMAnswer

Employee

If you rented a part of your home, or converted your home from personal to rental, then you would need to allocate the proportionate share between the two sections.

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mivey74

If you have the tricky case of multiple renters moving in at different times, and only occupying let's say an average over the year of 20% of your home that you also live in:

* Under TurboTax Wages and Income, select Rental Properties and Royalties - answer questions from the first two screens, then Edit (or Add if first time entering):
- Select Property Profile, answer 3 screens of questions, then say Yes, property was rented all year, answer next screen, then say No, I'll do the math. Then click through rest of Property Profile, then:
- Select Rental Income section - enter the Rental income.
- Select Expenses section - select Walk me through everything. Then just enter 20% of your expenses for each of Advertising, Utility, Mortgage Interest, Real Estate taxes, etc. (and include Electricity/Gas, Water, Internet, Cable TV, Netflix in Utilities (my Garbage and Sewage are in my Real Estate (Property) Tax)).
* Under Deductions section (not Rental section) - Enter 80% of the Mortgage interest under the Mortgage interest section (and don't enter any Property tax under the Mortgage interest section), and 80% of the Property Tax under the Real Estate tax section.

* Check your Schedule A and Schedule E when you print your taxes, to verify - it should show 80% of your Property Tax and Mortgage interest in Schedule A, and 20% in Schedule E.

as9405

I am in a unique situation-

I have multiple rental properties, some SFD and some small 20 units apartment.

All my LLCs are disregarded entity for tax purposes, so I file them with my own personal tax,

Unfortunately banks are not required to send 1098 to these LLCs. Clearly those huge amount of interests need to be deducted as my expenses against each property of its' loan interests..

IRS does know these are similar to 1098 expenses, but where do I place these interest expenses on my schedule E?

All my interests are applied against the loan, and all amount of loan was to pay the secured loan.

Can this be placed under other interest?