The recommended way to enter your mortgage Interest, property tax, and other allocable expenses would be to enter them in the rental property section of TurboTax. In the rental property section under your Property Profile, indicate that you rented out part of your home.
On the page, Let Us Calculate Your Expense Deductions for You, a yes answer will allow you to enter the entire mortgage expense and TurboTax will do the math for you based on the rental % of your home. If you choose this method, then you wouldn't enter the deductible personal portion again. TurboTax would transfer the personal portion to Schedule A.
All other expenses directly related to the Rental should be entered on Schedule E. Once you complete your return, review both Schedule A and E to ensure the expense allocations are correct.
In addition to Mortgage and Property Tax, you will also need to depreciate a portion of your home:
Rental portion only
For example, suppose you paid $90,000 for your house, including $30,000 for land. In your case, enter 1/3 x $90,000 or $30,000 for the cost and 1/3 x $10,000 for the land. TurboTax will depreciate the rental portion of your property ($30,000 - $10,000 = $20,000) which is one-third of the total house - less land.
- On the rental property info screen – select Add expense or asset
- Select Rental property
- EDIT your rental property under Assets
- Select Rental Real Estate Property
- Choose Residential Rental Real Estate
- On Tell Us About This Enter Asset, enter one-third (1/3) of the total cost and one-third of the land price. This will depreciate one-third of your property.
Partial Rental
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