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foresp76
New Member

I share my home that I own with a roommate who pays me rent. Should I include the property mortgage interest in the "Rental" section, or the "Deductions" section?

 
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hirscht1
New Member

I share my home that I own with a roommate who pays me rent. Should I include the property mortgage interest in the "Rental" section, or the "Deductions" section?

Pro-rate the Mortgage Interest and Real Estate Tax and other general expenses (those that affect the entire property) to the Rental as well as the Fire Insurance & HOA Dues.

e.g.  If the tenant is renting 1/3 of your house, apply 1/3 of the Mortgage Interest, 1/3 of the Real Estate Tax, 1/3 of the Fire Insurance, 1/3 of the HOA dues, 1/3 of the utilities and 1/3 of the other general expenses to the Schedule E.  Additionally any direct expenses such as repairs specifically to the rented space or maintenance (painting or carpet cleaning) in the rented space can be taken 100% on the Schedule E.

The remaining 2/3 of the Mortgage Interest and 2/3 of the Real Estate Taxes are reported on Schedule A.

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