Mortgage
interest and property taxes are divided between personal (Schedule A, itemized
deductions) and rental use (Schedule E) proportional
to the number of days used for each and square footage rented
For instance, if you rent
out 50% of your floor space, deduct 50% of your property tax and mortgage
interest times (days rented /365 ) as a rental expense, and the balance as
a Schedule A, itemized deduction.
So, if you rent 50% of
your floor space all year, divide the expenses 50-50 between itemized and
rental expenses.
So, you will enter a portion of mortgage interest and
property taxes in both areas.
Note:You can deduct homeowner's insurance for Schedule E, rental expenses, but not for Schedule A, personal itemized deductions.
