You would divide the total mortgage interest by 12 to get the monthly amount and report the rental months mortgage interest on Schedule E. The personal use months mortgage interest amounts would be reported on Schedule A. For example, if total mortgage interest is 12,000, it would equal 1,000 per month. If you rented 8 months and lived in 4 months, you would report 8,000 on schedule E for rental property use and 4,000 on schedule A for personal use.
To enter your rental property mortgage interest:
- Go to Tax Tools > Tools > Topic Search
- Type rental in the search box and click Go.
- Answer Yes to Do you want to review your rental and royalty information.
- Proceed through the interview to set up your rental property.
- When you get to the was the rental property rented all year, answer No. Then you will be able to enter the days rented and days used for personal use.
- When you get to the Review Your "Rental Property Address" Summary screen, click Start in the Expenses section.
- Select, I'll choose what I work on
- Enter any common expenses on the next screen and then Continue.
- Then you will be able to report your mortgage interest.
- Proceed through the rest of the interview to complete.
To enter your personal use mortgage interest:
- Go to Federal > Deductions & Credits
- Scroll down to the Your Home section and click Start next to Mortgage Interest, Refinancing, and Insurance (Form 1098)
- Answer any preliminary questions, and you'll then be asked for the name of your mortgage company. Enter the name and select Continue.
- Follow the onscreen instructions to enter the rest of your 1098 info.
