I have my previous primary home rented out starting June, 2017. For the Mortgage interest deduction, should I prorate? What do I put in the Box 1 of the 1098?

jaybose · ‎June 4, 2019

MinhT · ‎June 4, 2019

When you convert your home to a rental home mid-year, you should prorate the mortgage interest between personal use and business use.

The personal use portion is deducted as mortgage interest in Deductions & Credits > Your Home > Mortgage interest (box 1 of the 1098 entry page).

The rental use portion is deducted as a rental expense in the Rental section of TurboTax.

The same method applies for property taxes.

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MinhT · ‎June 4, 2019

When you convert your home to a rental home mid-year, you should prorate the mortgage interest between personal use and business use.

The personal use portion is deducted as mortgage interest in Deductions & Credits > Your Home > Mortgage interest (box 1 of the 1098 entry page).

The rental use portion is deducted as a rental expense in the Rental section of TurboTax.

The same method applies for property taxes.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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