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dingtt2000
New Member

In deductions & credit section, I can add rental home property tax for "additional homes or land", but if expensed the portion of property tax under " rental expense".

so I need to minus that part right? the rental property tax are split into two parts and filled in different section?
1 Best answer

Accepted Solutions
DS30
New Member

In deductions & credit section, I can add rental home property tax for "additional homes or land", but if expensed the portion of property tax under " rental expense".

It depends.

You will only be able to claim the difference between the total rental property taxes and the amount claimed under the rental section as part of your other property taxes under the personal deductions and credits section.(screenshot)

So if you converted your home to rental or your rental property was not available for rent during 2016, you will divide your property taxes between these 2 sections based on the time it was a rental and not available for rent.

When entering your mortgage information, you can divide the amounts of mortgage interest, mortgage insurance and property taxes between the number of days (or months) the house was either your residence (or not available for rent) and the number of days (or months) the home was a rental property.

For example, if your mortgage interest is $12,000 and your home was only available for rent for 5 months, then $5,000 will be allocated to your rental (Schedule E) and $7,000 will be allocated to your home mortgage interest deduction (Schedule A). Report each portion separately under the corresponding section in TurboTax (see below).

Please note that if your home was available for rent for 9 months but only rented for 5 months, you will allocate your mortgage related expenses based on rental availability regardless of how long it was actually rented. Using the example information, you would allocate $9,000 (the months available for rent) to your rental property instead of $5,000 (months actually rented). TurboTax will automatically allocate any portion of the mortgage interest not available for use under the rental section (Schedule E) to your personal deductions section (Schedule A) in this situation.


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3 Replies
DS30
New Member

In deductions & credit section, I can add rental home property tax for "additional homes or land", but if expensed the portion of property tax under " rental expense".

It depends.

You will only be able to claim the difference between the total rental property taxes and the amount claimed under the rental section as part of your other property taxes under the personal deductions and credits section.(screenshot)

So if you converted your home to rental or your rental property was not available for rent during 2016, you will divide your property taxes between these 2 sections based on the time it was a rental and not available for rent.

When entering your mortgage information, you can divide the amounts of mortgage interest, mortgage insurance and property taxes between the number of days (or months) the house was either your residence (or not available for rent) and the number of days (or months) the home was a rental property.

For example, if your mortgage interest is $12,000 and your home was only available for rent for 5 months, then $5,000 will be allocated to your rental (Schedule E) and $7,000 will be allocated to your home mortgage interest deduction (Schedule A). Report each portion separately under the corresponding section in TurboTax (see below).

Please note that if your home was available for rent for 9 months but only rented for 5 months, you will allocate your mortgage related expenses based on rental availability regardless of how long it was actually rented. Using the example information, you would allocate $9,000 (the months available for rent) to your rental property instead of $5,000 (months actually rented). TurboTax will automatically allocate any portion of the mortgage interest not available for use under the rental section (Schedule E) to your personal deductions section (Schedule A) in this situation.


Carl
Level 15

In deductions & credit section, I can add rental home property tax for "additional homes or land", but if expensed the portion of property tax under " rental expense".

You are assuming this property was converted to a rental in 2016. I am not, so that's why our answers conflict. For the sanity of the reader, here's clarification between our two answers.
If it was converted to a rental in 2016, then property taxes are pro-rated by the program automatically if the user elected to have the program do the pro-rates for them. If they do not elect to have the program do the proration automatically, then it clearly informs the user they have to do so manually theyselves, and tells them precisely where to do that in the program for the SCH A.
Carl
Level 15

In deductions & credit section, I can add rental home property tax for "additional homes or land", but if expensed the portion of property tax under " rental expense".

No. Absolutely all rental income and rental expenses must be reported on the SCH E, which is the Rentals & Royalty Income (SCH E) section of the program.

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