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kindfox1
New Member

If I rent out part of my house, do I enter the mortgage interest and prop. tax in the Deductions & Credits section or in Rental Properties section under Wages & Income ?

assume I rent our 30% of my house out.
4 Replies
WillK
Level 9

If I rent out part of my house, do I enter the mortgage interest and prop. tax in the Deductions & Credits section or in Rental Properties section under Wages & Income ?

The rental income is the total amount you receive from all sources for the rental. When you enter the information into the program you will enter under income the total amount you received for the rental. You will also be asked later in the program to enter in all the expenses (including mortgage interest for the property. This will reduce your rental income and properly calculate the profit/loss of the rental.   

To enter in your rental information, please follow the steps below:

1. Login to your Turbo Tax Account

2. Click Continue your return if you have already started a return. 

3. Click on Go to Federal Taxes heading 

4. Click on wages and income (you can either Choose Jump to Full List -or I'll choose what I work on) 

5. Scroll way down to Rentals and Royalties- click on start or update 

6. Follow the interview questions and answer accordingly, you will eventually get to a screen that will say 'Let Us Enter Your Rental Info for You' (check the last circle to enter my rental info myself) 

7. Rental Income - click Start or Update- complete this section 

8. Expenses - click Start or Update- complete this section 

9. Assets/Depreciation - click Start or Update- complete this section 

10. Vehicle Expenses - click Start or Update- complete this section 

Remember you will need to enter in the total rent you received for the year, then you will enter in your expenses (i.e. mortgage interest, repairs, property tax, etc...) You are only able to deduct the mortgage interest, not the principal. When you depreciate the cost of the rental, that will take care of the principal part.  YOU ADD THE PROPERTY TAX INFORMATION UNDER THE RENTAL SECTION AND TURBO TAX WILL CALCULATE THE % FOR RENTAL AND % FOR PERSONAL AND WILL MAKE THE ENTRIES FOR YOU. 

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kindfox1
New Member

If I rent out part of my house, do I enter the mortgage interest and prop. tax in the Deductions & Credits section or in Rental Properties section under Wages & Income ?

Let's say I rented 30% of my home out.  On my Deduction section, do I enter 70% of the mortgage interest from 1098 and 70% of the property paid in 2016?
faisal-goussous
New Member

If I rent out part of my house, do I enter the mortgage interest and prop. tax in the Deductions & Credits section or in Rental Properties section under Wages & Income ?

How should we answer the Deductions & Credits section in this case?
amanda2
New Member

If I rent out part of my house, do I enter the mortgage interest and prop. tax in the Deductions & Credits section or in Rental Properties section under Wages & Income ?

I have the same question - do you enter a lower number than appears on your 1098 in that section  if you've recorded part of the mortgage interest under rental property? It seems weird to do that because it tells you to fill it in as it appears on the 1098, but if you don't adjust it then the money is reported twice...

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