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Old house is now a rental. For mortgage interest deduction, why is turbotax adding the full year interest plus the portion of the interest when I lived there?

This generates an incorrect deduction amount for the mortgage interest, it's artificially high.
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2 Replies
ColeenD3
Expert Alumni

Old house is now a rental. For mortgage interest deduction, why is turbotax adding the full year interest plus the portion of the interest when I lived there?

Did you include the date you began renting it? You can just manually prorate between Schedules E and A.

Old house is now a rental. For mortgage interest deduction, why is turbotax adding the full year interest plus the portion of the interest when I lived there?

Yes, TurboTax had asked for the date the property was turned into a rental.  What I eventually did was to remove that 1098 from deductions, but left the info in the rental expenses section.  That let the Schedule E Worksheet allocate part of the interest to the rental and part as personal use.  That personal use amount was correctly carried over to Schedule A.

Thanks for your input.

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