- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Investors & landlords
You enter your mortgage interest and property taxes for your primary residence *ONE* *TIME* *ONLY* on your tax return. If you are working through the program the way it is designed and intended to be used, then you deal with the SCH E rental stuff first.
If you elect to have the program do the splits for you, then it will split the property taxes, mortgage interest, and ***SOME*** of the other things for you. So it's important that you read the small print on each and every screen, so you know whats going on.
When you elect to have the program do the splits for you, then you enter the 1098-Mortgage Interest Statement in the SCH E section exactly as printed. (see notes below). Then when you are finished with the SCH E section entirely and have fogotten about it by the time you get to the Deductions and Credits section, you'll see in the "your home" section, one of the screens will clearly inform you that it already has information for mortgage interest and property taxes, and to not enter that same information again.
NOTE: The program does not split the property insurance, because property insurance on your primary residence is not deductible. It never has been. I'm warning you about this because many lenders will include the property insurance paid from escrow, on the 1098 form. However, the percentage of your property insurance that is equal to the percentage of your residence that is being rented out, is deductible on SCH E. It's up to *YOU* to figure that percentage and enter the correct amount in the SCH E section of the program where is asks for the insurance amount. (It's one of the boxes in the rental expenses section.)
So if you elect to have the program split "all" the expenses for you (and I recommend you do), understand that the property insurance deduction that applies to the rental will "NOT" be figured by the program, since it's not split.