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Level 1
posted Mar 14, 2021 11:34:45 AM

Partial Year Rental Questions

I rented out part of my home for 184 days in 2020; I reside in the same residence as well. I am allowing Turbo Tax to calculate rental expense deductions based on Rental Use Percentage (Recommended setting) .  When entering mortgage interest and real estate taxes into Turbo Tax, do I enter the total amounts for all 366 days of 2020 and Turbo Tax calculates the deductions based on the 184 days rented? Or do I have  to calculate and enter the prorated values for only the 184 days?

 

Also will I still enter the full value of my 1098 under personal deductions?

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1 Replies
Expert Alumni
Mar 14, 2021 12:38:48 PM

If I understand what you are saying, you rented out only part of your home, not the whole thing.  You lived there at the same time.  So if you chose for TurboTax to calculate the rental portion of expenses, then you should enter the full amount in the rental section and the personal portion should flow to the itemized deductions.

 

Keep in mind that the rental portion would be prorated by the number of days rented and also the square feet portion that was rented out in comparison to the square feet of the entire home.

  • 184/366 x rental square feet/total square feet = percentage of mortgage interest and property tax allowed on the rental activity

Once your return is completed review your Schedule A or mortgage interest /taxes worksheet and Schedule E for both expenses.