You are right. You understand it was your personal residence for a good bit of the year and can only deduct expenses up to the amount of rental income. Mortgage interest and taxes are the first to make deductible expenses. If this was not a rental, they would be fully deductible on Sch A as a second home.
The total expenses exceeding the income are not deductible and should not be on Sch 1, line 5. Let's double check a few things:
Property profile - you may have a speck of data stuck somewhere in a field:
- Property rented all year? select No
- Delete and re-enter the 153 rental and 103 personal use days
Expenses section:
Go through the expenses section again until you reach Allocating Interest and Taxes. Select Use the IRS method. This should restrict your loss.
Look at your forms:
- Sch E Wks and verify the amount reported in col 1 is broken up for sch E reporting and allocated to personal use.
- Look at Sch 1 again
To print or view your forms, including all worksheets:
- In desktop, switch to Forms Mode.
- For online:
- On the left side, select Tax Tools
- Select Print center
- Select Print, save or preview this year's return
- If you have not paid, select pay now.
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