Following up on the post from @TurboTaxVal,
- No. If you are using the straight-line method to amortize the points over the life of the loan, this is reported on Schedule E.
- Yes. Allocate that portion of the mortgage interest that relates to the rental portion of your home. For example, if the mortgage interest was $1,000, ten percent of the $1000 is allocated to your rental--$100. However, because the property was rented for only half the year, in this example, the mortgage interest deduction would be $50.
@aharken
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