Converted primary property into rental

Forum|Forum|2 years ago
February 4, 2024
2 replies
31 views

As the line says, I converted my primary property into a rental. I as living there for the first ten months of the year. At the end of the year I got a 1098 from my lender.

When I was inputting my rental income on Turbo Tax, I deducted the mortgage interest I paid in the two months when it was a rental.

Then, when I got to the deduction section, I uploaded the 1098 I got from my lender and subtracted the amount I had put in earlier to offset my rental income.

Is that the right way to do it?

Mike9241

Level 15

Maybe. its ok if your mortgage balances didn't exceed the limit for acquisition debt. Generally, that's $750,000 for mortgages entered into after 12/15/2017. different rules apply if you had mortgages on a first or second residence that was incurred before that date.

Mike9241

Carl

Level 11

Is that the right way to do it?

Yes. That's one of the right ways to do it. Just ensure that your total of the interest claimed on SCH E and SCH A do not exceed the amount reported to you on the 1098. Just add together line 12 from the SCH E and line 8a of the SCH A. If the total matches the 1098, you're good.