I bought a property that has my home and a separate rental cottage on it. Do I enter all mortage interest from Form 1098, or half since I only rent half the property?

[mana1o]

TurboTax says to enter all mortage interest and it will allocate my personal portion over to the deductions section. But Iʻm concerned that itʻs assuming I rent the entire property for which I have a mortgage (I only rent out the rental cottage - not my home

[pk]

@mana1o , do you still need help on this ?

Generally, I would enter an allocated amount for mortgage interest and property taxes  on schedule-E ( rental income ) based on square footage.  Note that there is also depreciation  for the rental portion of the property  ( again you have to allocate the a portion of the total acquisition cost and  land underneath for purposes of  computing depreciable basis.

That portion of  mortgage interest and  property taxes   not allocated to the rental property is eligible for use  for your itemized deduction ( if you use that rather than standard deduction ).

Is there more I can do for you ?