I have a home that was a rental for 8 months (and converted back to primary home for the remaining 4 months) in 2023. Do I prorate (rental vs. primary home) the mortgage interest and the property tax (8 divided by 12) when reporting them in TurboTax or does Turbotax prorate it for me?
1. Turbotax only ask whether the property was rented for the whole year, but does not ask the ask the duration when it was up for rental or served as primary home. So it looks like I should prorate before reporting interest and local tax into the Rental and Deduction sections of Turbotax.
2. On the other hand, in the Rental section, Turbotax directs to "enter your mortgage interest from Form 1098, line 1" ... and ... "Turbotax will allocate your personal portion of qualified interest over the deduction section for you". It also reminds not to enter mortgage interest in the deduction section, since this will be transferred from the Rental section. Same directions seem to apply for property taxes. I cannot find anywhere when filing in Turbotax where I am asked how long the property was up for rental vs. used as primary home.
3. Turbotax does ask a) how many days the home was actually rented and b) how many days the home was used for personal use when listed for rental- not the days it was used as primary home/ not listed for rental).
Does it mean that only factors in the allocation are a) the days the home was actually rented and b) the days for personal use while listed for rental, vs. the 365 days of the year? And the remaining balance of the interests and taxes will the automatically transferred to the corresponding sections in the deduction section?
