Option #2. I rent a room in my house. What is this technically called?
Technically, it's "renting a room in my house". hehehehe.
It's important that you work through the program the way it's designed and intended to be used. That way, you will deal with the rental stuff first, before you get to the "your home" stuff. It's important to read the small print on each and every screen too. It does matter - big time.
If while working through the rental section you elect to have the program do the splits for you, then it will for "most" things but not all. It "will" split the mortgage interest if you elect that option, and then enter the 1098 exactly as printed.
After you finish the rental section, then when you get to the "your home" section and start working that through, the small print on one of the screens (dealing with mortgage interest) will tell you something along the lines of "we already have $xxx for mortgage interest" and the amount shown will be what is *NOT* allocated to the rental portion. It will *NOT* agree with whats on your 1098 and it "should not" agree with what's on your 1098. So you will "NOT" enter any additional mortgage interest in the "your home" section since you do "NOT" have any additional mortgage interest.
So that covers the mortgage interest. I'm stopping here so as not to risk additional confusion. If you have more questions, just ask.
