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 and square footage rented
Your formula is as follows: square footage of rental space/ total square footage of house times days rented/365 to be allocated as a rental expense
For instance, if you have $10,000 in mortgage interest and rent 25% of
your floor space for 6 months, multiply 10000 x .25 x .5 = $1250 to allocate as a rental expenses. the balance as a Schedule A, itemized deduction.
So, you will enter a portion of mortgage interest and
property taxes in both areas.
To enter personal mortgage interest and property ytaxes:
Type in mortgage interest in the search box, top right of your screen
Hit the Enter key
Click jump to mortgage interest in the search
results
Follow the prompts and online
instructions
To enter rental expenses, type in rental property and follw the above instructions
Make sure you are past
the blue Pick up where I left off
button before you enter the above
