TT says it calculates the division of mrtg interest and prprty taxes between sched E & A, but when I reviewed my return before filing it had not been divided. now what?

[laineyq]

I converted a personal property to rental.  When entering in TT the instruction said to enter total amount from 1098 in Sch E and it will calculate the proper amount as expense and will include the remainder in Sch A, but when I reviewed the schedules prior to filing, the total remained in Sch E - now I'm confused on how to enter this information in TT...?

[TaxGuyBill]

When you convert a 100% personal-use property to 100% rental, you need to manually prorate the expenses.

So only enter the rental portion in the rental section, then only enter the personal portion for Schedule A.

[laineyq]

I appreciate the response, TaxGuyBill.  This clarifies what I thought needed to be done, however, I still don't understand clearly how to enter this information in the TT system - the system is explicit that it wants you to enter the specific information from the 1098 and in some responses it says TT will calculate the appropriate expenses in Sch E and then add the remainder to Sch A but it didn't....to add it manually means you would add information NOT correlating with the 1098 reported

[TaxGuyBill]

There is no need to the two separate numbers to match the 1098, and the program does not prorate it in this circumstance.  If the program or anything else is telling you otherwise, it is wrong.

[laineyq]

so, got it, enter the prorated info in sch E (rentals and royalties for the respective property)...but to add the pro-rated mtg ins and prop tax the only way to do that in TT seems to be to select 'add another 1098'....instead of entering the amount reporting on the 1098 in blocks 1 and 10, enter the prorated amounts?  Do I also select 'the information entered doesn't match the 1098 received'?

Seriously if you can clarify this for me it would be GREAT!  Its the only thing holding up my filing

[TaxGuyBill]

Unfortunately, I am unsure how to enter the personal part in the step by step interview.  Yes, you only enter the prorated amounts, but I am unsure how to navigate through the interview to do that.