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Level 3

## My refund is larger because the mortgage interest and property tax deductions seem to be counted incorrectly when renting primary residence

I have a primary residence which I am renting a portion of.  I have broken it into 2 different properties (besides it being my primary residence).  So one portion is 30% of main house rented .  Another portion is 25% of main house rented (back unit).  Why did i separate them out?  Don't ask. hah.  But basically a CPA had done this for me in the past and i decided to just do the same.  The problem is that when i deduct my Mortgage interest and Property tax from the rental properties (30% and 25% of my primary residence) along with deducting those from my main house, i get a huge number for both.  Can't figure out the calculation on how it got the number.   Basically my total mortgage interest is \$26K and the total mortgage deducted came out to over \$30k!!  I feel this may be a bug when I let turbotax do the calculation for me (where i input the total mortgage interest for each property).  The same happens with property taxes.

Level 11

## My refund is larger because the mortgage interest and property tax deductions seem to be counted incorrectly when renting primary residence

If the total mortgage interest from the mortgage company is \$26k, how much

A- did you allocate to Property 1
B- did you allocate to Property 2
C - did you allocate for the primary residence?

Level 3

## My refund is larger because the mortgage interest and property tax deductions seem to be counted incorrectly when renting primary residence

I input \$26K for all and let TT do the calculations.  So they would be divided like the following (but they aren't once i get to the deductions portion, where it shows more than \$30k):

A - \$26k * .3 (TT does calculations)

B - \$26k * .25 (TT does calculations)

C - Primary residence: remaining, where I did my own calculation by multiplying \$26k * .45

Level 11

## My refund is larger because the mortgage interest and property tax deductions seem to be counted incorrectly when renting primary residence

I  can't see how TT would know that these 2 properties are tied together so that .35+.2+.45 = 100%

it works fine if there is only 1 property rented as part of the primary residence.

suggest date entering manually which is an option

Level 3

## My refund is larger because the mortgage interest and property tax deductions seem to be counted incorrectly when renting primary residence

Ah.. interesting. I guess tt doesn't know how they are connected. That actually makes sense. Yup, going to do it manually. Thanks for looking into it!