There are two possible scenarios that yield different answers.
- You state 25% of your home is rented out 82% of the time. The question becomes what do you do with the space the other 18% of the time. If you are using it for friends and family, then your use is 25% x 82%.
- If the room sits there with nothing to do but wait for the next person and is being held out for rent at any minute, it is actually in use as a rental 100% of the time, regardless of it only being rented 82% of the time. Then your deductions are the full 25%.
When you go through Sch E, you have the options of entering the data or letting the program do the math. You can choose your percentage and let the program do the work or you can make your own entries.
If the program does the math, you enter the full amount of interest and it separates the Sch E and Sch A amounts since you have marked that you rent out part of your home.
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