Deductions & credits

Question 1 -- The entries you made are correct.

Question 2 -- Yes, it is correct.  As long as the room was available to rent all year with no personal use, then you can take a portion of the expenses for the whole year.

Question 3 -- Between Schedule E and Schedule A, the mortgage interest is 100% deductible.  20% will be claimed as a rental expense on Schedule E and the other 80% will be reported on Schedule A for itemized deductions.  You should go to the mortgage interest section of Deductions and Credits to be sure that the 80% portion has been reported there.  Read the screens in that section carefully because there will be messages on the screen saying whether or not the personal amount of the mortgage interest has already been transferred to Schedule A from Schedule E.

Use these steps to go to the mortgage interest section in Deductions and Credits:

• On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner) 
• This opens a box where you can type in “mortgage interest” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
• The search results will give you an option to “Jump to mortgage interest”
• Click on the blue “Jump to mortgage interest” link