Mortgage Interest When Property is Partly Rental

[lilly54]

I'm on a Mac but the only options is are Windows or I don't know.  So first question, how do I indicate I am on a MAC?

I'm using TurboTax Home and Business and I have housemates. TurboTax is set up from prior years for this. Where do I enter my mortgage interest information this year? There didn't seem to be a place with the property information itself. Do I enter it under Your 2025 Deductions and Credits->Mortgage Interest? Similarly with Property Tax? In various prior versions we were told specifically not to enter it there and it is indicating $0 for 2024 in that box which was not what was on my 2024 taxes that I imported.  

Thanks!

[DianeW777]

The software does have a different look and feel in some respects. My advice is to calculate the amount of mortgage interest that applies to the rental and the home separately and manually. Next enter them each separately without selecting that TurboTax do the calculations for you.

• In the rental section select mortgage interest from the list or use miscellaneous expenses and label it there and do the same for property taxes.  
• On your itemized deductions enter percentage that applies to only your home portion of the property for the mortgage interest and property taxes.

[lilly54]

Seriously? TurboTax has done the percentages for me for years and applied it correctly. I already have that already set up from last year. Why would I want to manually do what I am paying for software to do? Is there a known bug this year?

[MonikaK1]

If you have been entering the mortgage interest in the Rental section of TurboTax Home & Business for Mac, and having the program allocate the rental and personal percentage - here are the steps to get to mortgage interest for a property that has already been set up:

1. Go to the Business tab
2. Select Start or Update next to Rental Properties and Royalties
3. Answer Yes to Do you want to review your rental and royalty information?
4. Answer the question about Real Estate Professionals
5. You should then see Rental and Royalty Summary page. Click Edit to make changes.
6. Click Expenses to enter or edit expenses.
7. Click I'll choose what I work on
8. The Common Expenses screen appears. Edit any items needed on that screen includine Real Estate Taxes
9. Click Continue
10. The next screen has entry fields for mortgage interest.

For a property that is partly rented and partly personal, TurboTax should automatically allocate the interest between Schedule E (rental) and Schedule A (personal itemized deductions) based on your reported rental/personal days and/or percentage of use.

See this TurboTax tips article for more information.

@lilly54 

[lilly54]

Thank you. Is there any reason to believe this won't happen in the future if I change allocations? I don't need to do so this year but the prior reply suggested that TurboTax wasn't supporting it. 

[DawnC]

No, the allocations will remain there as long as you have them in the rental property correctly.  If the property isn't set up properly with personal and rental days allocated properly, the automatic allocation won't work.   But your rental profile is correct so you should not have an issue.