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Level 2
posted Mar 15, 2024 8:55:44 PM

How to Split One Mortgage between Two Schedule C's

Hello All,

New to the Community, so thankyou in advance. Hopefully I can explain my situation well enough here.

I have 2 (separate) Home Offices, each with a different square footage, and only one mortgage statement, Form 1098. So my question is how do I split the mortgage, and the associated RE taxes, between the 2 offices?

As I have it entered right now, the taxes, mortgage interest are being "doubled up", thus giving an incorrect outcome on the return. Is it possible to enter the interest & RE tax without entering the data as from a form 1098?

Would it be necessary to apply the "procedure" to the repairs, utilities, etc. that apply to the whole house? Or would these items simply be a case of applying the appropriate % to the expense and entering the result on the data entry page(s).

I hope that was clear. And thank you again in advance for all of the help.

 

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3 Replies
Expert Alumni
Mar 16, 2024 6:44:57 AM

Yes, you should be able to claim your expenses on each of the Schedules C.  If you have separate spaces for each business,  you'd enter the square footage for each office space when you enter the information for each business.

 

To enter your home office expense along with other common business expenses:

  1. Open or continue your return
  2. Search for Schedule C 
  3. Select the Jump to link in the search results
  4. Answer any questions about your business until you get to the Your self-employed work summary screen
  5. Select Edit or Review next to your business
  6. You'll be asked to select the expenses you know you had
  7. Select Home office. You can also select any other expense categories that apply to your business. Select Continue at the bottom of the screen when you're done.
  8. On the Here's your [type of work] info screen, scroll down to the Expenses section, and select Start next to Home office.
  9. Enter the info about your home office.

You will repeat these steps for each of your businesses. 

 

See  the TurboTax help article below for more information and feel free to reach back if you have additional questions.  

 

Can I claim the home office deduction for two or more businesses?

Level 2
Mar 16, 2024 8:19:30 AM

Hello Leticia,

Yes, I am able to populate 2 Schedule C's. The problem arises when looking at Schedule A the Real Estate tax shown on Schedule A is more than the total reported on my Form 1098.

Expert Alumni
Mar 17, 2024 2:40:29 PM

If you are still getting an error, it would be helpful to have a TurboTax ".tax2023" file that is experiencing this issue.

You can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions: 

  1. Go to the black panel on the left side of your program
  2. Select Tax Tools.
  3. Then select Tools below Tax Tools.
  4. A window will pop up which says Tools Center.
  5. On this screen, select Share my file with Agent.
  6. You will see a message explaining what the diagnostic copy is. Click okay through this screen and then you will get a Token number.
  7. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.

Here are the instructions if you are using TurboTax CD/Download:

  • Click on Online in the top left menu of TurboTax CD/Download for Windows
  • Select 'Send Tax File to Agent'
  • Write down or send an image of your token number then place in this issue.
  • We can then review your exact scenario for a solution.
  • Please also tell us any states included in the return.

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution. 


@DANINFL