First Year of Rental during mid of year, adjusting Schedule E and Deduction

[Rkadam]

Hi TT Team,  I am using Desktop premier.

I am entering rental income on Schedule E for rental I started 1st June 2024. In here both Real estate taxes and Mortage interest should be prorated? For reporting mortgage interest, it says enter rental portion of mortgage interest, but for taxes it's not explicitly mentioned .

Also, it says we will ask you to enter personal portion later, but it doesn't  ask?

On deductions if I choose to enter 1098 and choose Kind of property as other which is for rental property it routes back to schedule E. and  doesn't give opportunity to enter personal portion of mortgage interest or taxes. 

Do I need to choose the kind of property as Primary or Second Home to allow myself to enter 1098 and choose check box to indicate the amount I am entering is not same as actual 1098? 

Please Help this is holding my return.

 FYI, I also have new mortgage for new primary residence. 

[RobertB4444]

This is a second home for the first six months of the year so you can enter it that way.  

But you are correct about pro-rating the taxes and interest for the rental period.  You can do that math manually and then enter the personal portion into the deductions and credits section along with the mortgage interest and taxes on your primary home.  You just need to be careful that the value of the total mortgages doesn't exceed $750,000 or your deduction is limited.

@Rkadam 

[Rkadam]

Thanks appreciate for your response,  and I should also check the box saying the interest amount is different than what its actual on 1098. With the reasoning in following section that it's for personal portion.

[AmyC]

For the personal portion, just enter the correct allowed amount. The IRS will look at the 1098 they received and look at your tax return. They will see the personal portion on Sch A and the rental house portion on Sch E.

 You must have chosen to do the math yourself. Otherwise, the program moves the rest to Sch A.

Either method, you should always view your forms and verify the correct amounts are on each form before filing.