Divide expenses between personal home and rental portion of home

[Marketstar · Accepted solution]

Mortgage interest and property taxes are divided between personal (Schedule A, itemized deductions) and rental use (Schedule E) , proportional to the number of days used for each.

For instance, if you rent out 40% of your floor space, deduct 40% of your property tax and mortgage interest times days rented /365 as a rental expenses, and 60% of the property tax and mortgage interest as a Schedule A, itemized deduction.

So, you will enter a portion of mortgage interest and property taxes in both areas.

[wuhaoran2008]

I rent out 33% of my floor space for 277 days last year. However I can only type 277 days but not 33% in Turbotax. So Turbotax only use 277/365 to divide my rental expense. Could you please advise where I can type 33% of my floor space?

[lixin]

I had similar situation last year. I rented one room of my house for 7 months last year. Turbo tax doesn't seem be able to handle partial year and portion of the house. I tracked my expenses in excel sheet and calculated myself. Then I input calculated expenses in Turbo Tax. As long as I make sure the correct prorated expenses deducted on sch E, I think that should be fine.

[wuhaoran2008]

Thank you for your reply! So by inputting your calculated expenses in turbo tax, did you still input the rented days as 210 days (7 months)? I think Turbotax will use this number to divide the total expense. Or did you just enter 365 days?