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leaning07
New Member

I turned my primary residence into a rental halfway through the year. Do I deduct all mortgage interest and property taxes paid that year from rental income or do I need to prorate it; or since TT ask

 
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2 Replies

I turned my primary residence into a rental halfway through the year. Do I deduct all mortgage interest and property taxes paid that year from rental income or do I need to prorate it; or since TT ask

When the residence was your personal home you deduct the mortgage interest paid on Schedule A as an itemized deduction.

When the residence was a rental you enter mortgage interest paid as an expense on Schedule E.

Anonymous
Not applicable

I turned my primary residence into a rental halfway through the year. Do I deduct all mortgage interest and property taxes paid that year from rental income or do I need to prorate it; or since TT ask

i would say you need to split rather than prorate.  the interest you paid before converting would be personal and the interest you paid after would be rental.  same with property taxes.

 

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