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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.
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March 14, 2025
7:36 AM