Split Mortgage Interest and Taxes due to Rental

[brianinmaine]

This past year we started renting out space above our attached garage.  We rented it in Sept, Oct, Nov and December and that space represents about 23% of our overall square footage of the house.

In TT I entered the following:

1.  Its a single family )home where a single family lives) - Is this correct?

2. I put that I rent out part of my home

3. It was not rented all year

4. It was rented for 122 days

5. I will enter the amounts and let TT do the calculations

6. I enter 23% for rental use percentage

I then entered the total rental income for those 4 months of renting.

As for expenses I put in only the 4 months of expenses (insurance, property taxes, mortgage interest) by taking the total of each, dividing by 12 and then multiplying by 4.

TT then calculated the 23% of each of those on my schedule E.  

So on my schedule E for real estate taxes for example it  shows: (total real estate taxes was 6492)

2164 as the total with 498 as reported on schedule E (for the rental) and 1666 for personal us (I entered 2164 because that is (6492/12) * 4.  TT then calculated the 23%

On my schedule A it shows 5994 for real estate taxes (which the 498+5994 comes out to total 6492)

Did I do this correctly?  Between the two areas the total comes out right, so it seems I have done it correctly, but want to make sure.  I have done the same for mortgage interest.

[AnnetteB6 · Accepted solution]

For the situation you described, it looks completely correct.  I don't see anything that was missed.  

[brianinmaine]

Thank you.  One last question.  As I mentioned this is an apartment above our attached garage.  We have rented it out for 4 months in 2025. We do not use a rental management company, we advertise on something called Furnished Finder.  With that being said, does this fall under Qualified Business Income?

[MaxA1]

It depends.  See the following link for information on how to qualify your rental activity as Qualified Business Income (QBI):

• Can I get the QBI deduction on rental income?