RobertB4444
Expert Alumni

Deductions & credits

You should go back to where you entered the amount into your itemized deductions for schedule A and delete your entry that you made there.  The system has automatically entered the portion not used for the rental into schedule A and added it to the mortgage interest that you put in there.

 

Additionally, mortgage interest is only deductible for the first $750,000 in mortgage debt that you have.  So if the amount in box 2 of your 1098 is greater than $750,000 then your mortgage interest deduction for the non-rental portion would be reduced.  

 

@bkhattri11 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"