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Deductions & credits
You need to look at your sch A and sch E. By law, only the personal portion goes on Sch A, $3500 for mortgage interest. Claiming $7,000, the entire amount would be wrong and would give you an increased refund which you would later pay taxes and penalties on when paying it back.
The sch E contains all income and expenses related to the rental, it should have $3500 for rental mortgage. If either of these forms have indicated wrong numbers in the past, you will need to file an amended return to claim the adjustments.
Always check your tax return before filing in the future.
Reference:
- About Schedule A (Form 1040), Itemized Deductions - Internal Revenue Service
- About Schedule E (Form 1040), Supplemental Income and Loss
- Should I file an amended return?
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‎February 27, 2023
12:14 PM