Split mortgage interest and property taxes on rental property

[ssanto]

Just double checking...

I converted my personal home to rental property in 2018.  I've got all of my rental property stuff entered correctly in the Schedule E section.

In the Deductions and Credits section, I will only enter the portion of the mortgage interest and property taxes for the amount of time the property was in personal used (before conversion).  Because if I entered the total amounts, that would be "double dipping".

There is a "check this box if the number you entered is different than the 1098" option.  I suppose I should check this since I'm hand editing the number.

Sound about right?

Thanks!

[Carl]

The program does the splits for you automatically on the Mortgage Interest and property taxes, *PROVIDED* you tell the program you want it to do the splits for you. So its important that you work through the program the way it's designed and intended to be used.

So you'll enter the rental stuff first and get it all done. Then later when you get to the "Your Home" section in the deductions and credits tab, make sure you pay attention to detail because the program will tell you on the screen, in small print, that it already has $X dollars for property taxes, and $X dollars for mortgage interest, on the same screen where it will ask you to enter those items. You have to watch that so that you don't inadvertently double-dip on those items.

I suppose I should check this since I'm hand editing the number.

You can check it if you want, but the "total" mortgage interest being claimed on your tax return, will match what's on the 1098. You would be required to check that box if your total mortgage interest being claimed, exceeded what's on your 1098.

Overall I would expect you to have two 1098's. one for the house you moved out of and converted to rental, and the other for the new house you moved into. So if you let the program do the splits for you, you'll enter the 1098 for the rental property in the rental section, and the 1098 for the home you moved into, in the "Your Home" section.

[ssanto]

Hmmm... I didn't see anything in the 1098 section of deductions of credits mentioning the stuff I did for the rental property.  I followed all the rental property stuff through correctly (I think I did anyway).  I even deleted the 1098 and re-clicked-through the rental property stuff and nothing popped up in the 1098 section about it.

I suppose I'll be fine if I hand enter the numbers.  I know I've got the math right.

You are right that I've got two 1098's.  One I entered for the new house exactly matches the 1098.  One I entered for the old house is pro-rated based on how long I was there before renting it.

Thanks!