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davemlikens
New Member

I converted home to rental property halfway through the year. What's the proper way to claim mortgage interest?

 
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Marketstar
Level 7

I converted home to rental property halfway through the year. What's the proper way to claim mortgage interest?

Mortgage interest and property taxes are divided between personal (Schedule A, itemized deductions) and rental use (Schedule E) , proportional to the number of days used for each.

If for example, the home was your personal residence until June 30, 2016, and  you converted the home to a rental property on July 1, 2016, you would divide the mortgage interest and property taxes "50-50" between home (Schedule A) and rental (Schedule E)

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GN
New Member

I converted home to rental property halfway through the year. What's the proper way to claim mortgage interest?

Some answers say we have to manually prorate, which would set up a flag that the 1098 doesn't match what was actually reported. When I look at the forms TT prorates for you based on days rented.  Very confusing and no consistent answers. Please help!!

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