How to prorate tax, interest, and insurance for a house converted from residence to rental during calendar year

turbo tax asked for a date when house converted to rental but looks like it took full amount of annual interest etc. as rental expense, and then full amount as residence expense, should I manually split the amounts?

posted

Yes, allocate each portion to personal/rental. Ex: Lived in home for 7 months and rental for 5 months. Allocate 60% of interest/property taxes as a personal deduction and 40% as a rental deduction.

For following year, if the property continues as a rental, all of the interest/property taxes will be entered on the rental side.

On the page, Do Any of These Situations Apply to This Property?, mark the boxes for first year to rent and that the property was converted from personal use to a rental in 2016.

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