Since you converted your primary residence to a rental property during the year, you will need to enter the 1098 information only for the portion of the year that the property was a rental in the Schedule E Rental Income and Expenses section of TurboTax. The program will not prorate that information for you when you convert a personal property to a rental.
The same thing would be true for other expenses such as property tax and insurance. Enter the applicable amount that was paid during the time the property was a rental when working through the rental income and expense section.
Additionally, be sure that you also adjust the amounts reported as an itemized deduction to reflect only the period of time that the house was your personal residence. You will need to adjust for mortgage interest and property tax. Personal homeowner's insurance is not deductible for the time you lived in the home.
One more tip to insure proper deductions on the Schedule E. As you first go through the Rental Income and Expenses section, you should indicate that 2023 is the first year you have rented the property and that you converted it from your personal residence. Doing this, you will be asked to provide the number of days of rental use and the number of days of personal use. Your personal use days should be zero. This question is asking whether you used it personally at any time after it was converted. Before it was converted does not count.
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