I own a duplex and live upstairs. In prior years family members lived downstairs, but this year I started renting the second unit part of the way through the year. The downstairs unit is 45% of the square footage and I rented it for 25% of the year, so the portion of the mortgage interest and property taxes that should be applied to the rental income is 11.3% (45%x25%). I itemize on Schedule A so I want to get full credit for the 90% of mortgage interest I paid over there.
TurboTax online was not allowing me to allocate things properly so I bought Desktop to access the forms, but unfortunately I still cannot get it to allocate properly. If I leave the Owner-Occupied Rentals box unchecked, it allocates 25% of the costs to the rental (based on the number of days I rented). If I check the Owner-Occupied Rentals with 45% input, it allocates $0 to the rental but reduces the Schedule A amount reported to 55% of the total! If I check the Owner-Occupied Rentals with 11.3% input, it correctly calculates the Schedule A amount, but still allocates $0 to the rental deduction, leaving me incorrectly reporting rental income.
I have read Publication 527 multiple times and I am sure that it should not be $0 allocated to rental deduction! Does anyone know how to get TurboTax to correct this and accurately report the 11% of my mortgage interest & taxes that should be offsetting my rental income for 2024, and also accurately report the % that goes on Schedule A?
Absent that, does anyone know how to override the calculations and put the correct amounts into the forms? I know this cancels the accuracy guarantee but since it's not accurate I would rather have it be correct than have a fake guarantee...
