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ebillo
New Member

Mortgage interest on rental property

A second home of mine has been rented for the entire (2016) year. I need to report mortgage interest on that rental home. Reading other answers, it appears that I should report that on the "Wages & Income => Rental Properties and Royalties (Sch E)" section. I'm not 100% confident/satisfied with the answers I've seen so far for two reasons:

1) TurboTax will let me enter those interest numbers on both "Wages & Income => Rental Properties and Royalties (Sch E)" and "Deductions & Credits => Mortgage Interest, Refinancing, and Insurance (Sch A)" and will not complain if I try to e-file the tax return like that. I think it should.

2) On "Deductions & Credits => Property Taxes", there's a clear message saying: "IMPORTANT: Don't enter property taxes for rental property here. Enter them with your rental expenses.". Why isn't there a similar one for mortgage interests?

Since turbo tax software has not been effective in convincing me (through its wizards) that I am doing the right thing so I'm sending this question to double check things.

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1 Reply

Mortgage interest on rental property

Rental property mortgage interest is entered on Schedule E.  In the TurboTax program follow these steps -

  • Go to My Account > Tools > Topic Search
  • Type rental in the search box and click Go.
  • Answer Yes to Do you want to review your rental information and then Continue.
  • Click Edit next to the rental property.
  • On the Review Your rental property Rental Summary screen, scroll down to the Expense section.
  • Click Start or Update next to Expense and then click I'll choose what I work on.
  • On the Enter Common Expenses screen, you can enter your Real Estate Taxes and other expenses.
  • Click Continue.  Then you will be able to enter your mortgage interest. (see screenshot)

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