Hi community,
My son bought a home in 2017 and turned it into a rental last year 10/2023 since he bought a new home with his girlfriend. 1098 has both names on it, but only her SSN. If they are splitting it 50% each, mortgage interest, points can be split. But my question is do I split the outstanding mortgage balance as well when inputting it on turbo tax.
Just realized IRS Iimits mortgage interest deduction up to 750,000 mortgage DEBT. For singles would it be 375K?
Do I use 1/2 the mortgage amount (taken out with girlfriend) to calculate if he’s within the 375k debt balance? When putting it on turbo tax, I am putting in 1/2 amounts and explaining it in the explanation part. I was just wondering if everything on 1098 posts ans 1/2 amounts as well? I understand he can deduct the rental expenses, portion of mortgage, taxes etc from 10/23on, but is the prior months interest payments lost on his former home?
Any help would be greatly appreciated! Thank you!🙏
