Background:
I have a property which was my primary residency from January until end of August (Property A). I bought another property and moved to it in September as my primary residency (Property B). I kept Property A but starting September it was made available for rental. I was not able to get a tenant at all during 2020.
Now, Property A had an outstanding mortgage balance of $529K by the end of the year. Property B had $1.2M. Total interest paid for Property A in 2020 was $20K and for Property B $8.6K.
Question:
Is it right if I claim full Schedule A interest deduction from January to August for Property A ($13.3K) and the remainder ($6.7K) in Schedule E for the rental property AND limited Schedule A interest deduction from September to December for Property B ($8.6K x ($750K/$1.2M) = $5.5K) for a total Schedule A interest deduction of $18.9K and Schedule E deduction of $6.7?
If so, how do I do this in TurboTax? When I enter the total mortgage interest paid from my two 1098s, the 2 mortgage balances are totaling $1.7M and reducing my interest deduction because of the $750K limit...
