I am a first year landlord using Turbotax live/online. I have found a lot of conflicting information regarding whether TurboTax automatically prorates certain figures in the Rental Property / Expenses/Assets (Depreciation) section of the live software. Based on the questions asked when you setup the rental property specifics in the General Info / Situations section, it appears that TurboTax expects you to put in the full, total annual amounts for real estate taxes and mortgage interest listed on the related 1098. This seems logical and the idea is supported when you attempt to enter the same 1098 in the Deductions & Credits section and the software rejects it by stating:
Since your rental property is an investment, it gets entered as part of your income on Schedule E.
However, when you enter the information in rental / schedule E section, it states,
Enter the rental portion of mortgage interest reported to you on Form 1098. We'll ask you to enter your personal portion later. Find This
In the schedule E (rental) section it makes it sound like you should prorate the information, but then in the Deductions and Credits section it doesn't allow you to enter the data. My assumption is that the language is wrong and TurboTax does indeed prorate mortgage interest and realty taxes based on the specifics entered when you setup the rental property for the first year.
Can someone please confirm the exact expenses (if any) that are automatically prorated in TurboTax Live? Also, is there a way to view what exactly is being input on tax forms prior to submitting? Thanks
