Thank you, that matches what I did. My concern is that TurboTax seems to have calculated it incorrectly, and I need guidance on how to amend.
TurboTax had me enter the full mortgage interest in the rental section, then allocated 17% to Schedule E (rental) and 83% to Schedule A (personal). However, it did not apply the $750k federal mortgage interest cap to the personal portion, which is why I received a CP28A notice.
What’s the correct way to fix this when amending? If I reduce the mortgage interest amount so TurboTax recalculates Schedule A correctly, then Schedule E will be wrong because it will use 17% of the reduced amount. It will also throw off Schedule CA, since California allows interest up to $1M and my qualified mortgage principal is under that limit.
