How do I enter my property tax and mortgage interest on a property that I lived in part of the year and rented for part of the year?

[cmac98117]

I recently moved out of my primary residence in July-2023 and listed it for rent shortly thereafter. During the Rental Income questions, I entered the start date of the rental (pro-rated from the July start date) and entered my full property tax and mortgage interest expense. I also loaded these values (mortgage interest and property tax) into my 1098. 

I don't want to run the risk of double counting these deductions... but how should this be handled? Do I prorate the amount that goes into the Rental Income and the portion that goes onto my 1098? Or exclude these from the 1098 altogether?

[MarilynG1 · Accepted solution]

Actually, if you enter your Mortgage Interest and Property Tax in the Rental section first  (the full amounts), TurboTax will calculate the amount that applies to the Rental (for the part of the year you rented), and put the balance on Schedule A for Itemized Deductions for the portion of the year that you personally occupied the property. 

So you can go back to your Mortgage Interest/Property Tax  deductions (in the Credits & Deductions section), and delete your entries there, so that you won't be double-counting these deductions. 

Then return to the Rental Section and step through those screens again (with the full amounts) so TurboTax can calculate the amount to transfer for you to Itemized Deductions.  Be careful with the question 'was the property rented every day in 2023'.  You need to say 'Yes' here, as it is referring to the time it was designated as a rental. 

Here's more info on Converting Primary Residence to Rental.

@cmahannah 

[abaldwi16]

A Turbo Tax live help employee told me I need to manually calculate the portion of Mortgage interest and real estate taxes based on the number of fair rented days. It does not seem to be making that prorated calculation for me manually when I entered the full amounts in the rental income section? 

[frementnewark]

i found the same problem too. how do i manually enter into the correct numbers in the online version of Turbotax? Thanks

[MarilynG1]

If you started renting in 2024, when you set up your Rental Property with a 'service date' TurboTax calculates the amount of Mortgage Insurance/Property Tax that applies to the rental from that date ONLY if you select to 'let TurboTax do the calculations' in the interview. 

However, if you only rented part of the home for part of the year, you need to do the calculations. 

You may want to delete Schedule E and worksheets and step through the Rental section again.  

If you're using TurboTax Online, clear your Cache and Cookies after deleting, BEFORE stepping through the Rental section again.  Here's How to Delete Forms in TurboTax Online.

@frementnewark