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I bought a home in 2015. I lived in it until May of 2016 and started renting it out on May 21, 2016. Where do I claim taxes, insurance premiums and interest?

Do I split it 38% and 62%? It's very unclear. At first I had it all under my deductions. Then I switched it all over to my rental. But it's telling me since I own a home I have to add something there.

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DS30
New Member

I bought a home in 2015. I lived in it until May of 2016 and started renting it out on May 21, 2016. Where do I claim taxes, insurance premiums and interest?

Yes, divide the mortgage interest, taxes and insurance amounts and report them separately under each section (rental section and home section).

Since you converted the home from a residence to a rental property during the year, you will need to allocate these expenses between days while home was still a residence and days when the home of available for rent (whether or not actually rented on day the home was available for rent)

When entering your mortgage information, you can divide the amounts of mortgage interest, mortgage insurance and property taxes between the number of days (or months) the home was your residence and the number of days (or months) the home was a rental property.

For example, if your mortgage interest is $12,000 and your home was only available for rent for 5 months, then $5,000 will be allocated to your rental (Schedule E) and $7,000 will be allocated to your home mortgage interest deduction (Schedule A). Report each portion separately under the corresponding section in TurboTax (see below).

Please note that if your home was available for rent for 9 months but only rented for 5 months, you will allocate your mortgage related expenses based on rental availability regardless of how long it was actually rented. Using the example information, you would allocate $9,000 (the months available for rent) to your rental property instead of $5,000 (months actually rented). TurboTax will automatically allocate any portion of the mortgage interest not available for use under the rental section (Schedule E) to your personal deductions section (Schedule A) in this situation.


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1 Reply
DS30
New Member

I bought a home in 2015. I lived in it until May of 2016 and started renting it out on May 21, 2016. Where do I claim taxes, insurance premiums and interest?

Yes, divide the mortgage interest, taxes and insurance amounts and report them separately under each section (rental section and home section).

Since you converted the home from a residence to a rental property during the year, you will need to allocate these expenses between days while home was still a residence and days when the home of available for rent (whether or not actually rented on day the home was available for rent)

When entering your mortgage information, you can divide the amounts of mortgage interest, mortgage insurance and property taxes between the number of days (or months) the home was your residence and the number of days (or months) the home was a rental property.

For example, if your mortgage interest is $12,000 and your home was only available for rent for 5 months, then $5,000 will be allocated to your rental (Schedule E) and $7,000 will be allocated to your home mortgage interest deduction (Schedule A). Report each portion separately under the corresponding section in TurboTax (see below).

Please note that if your home was available for rent for 9 months but only rented for 5 months, you will allocate your mortgage related expenses based on rental availability regardless of how long it was actually rented. Using the example information, you would allocate $9,000 (the months available for rent) to your rental property instead of $5,000 (months actually rented). TurboTax will automatically allocate any portion of the mortgage interest not available for use under the rental section (Schedule E) to your personal deductions section (Schedule A) in this situation.


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