I converted a personal property into a rental property in 2016. In the deduction section do I enter all the mortgage interest, or subtract the amount prorated to rental?

accounts2 · ‎June 6, 2019

In the Rental Income section, I entered a prorated amount of mortgage interest, which appears to be deducted from my rental income. I'm assuming that in the Deductions & Credit section, I should only enter the balance of mortgage interest, not the full amount on the Mortgage Interest Statement. Is this correct?

PaulaM · ‎June 6, 2019

That is correct. You will need to allocate to each section the proportionate share of interest and property taxes.

Ex: Lived in home for 9 months and rental for 3 months. Allocate 75% of interest as a personal deduction and 25% as a rental deduction.

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I converted a personal property into a rental property in 2016. In the deduction section do I enter all the mortgage interest, or subtract the amount prorated to rental?