While searching Community answers for how I should enter mortgage interest, real estate taxes, etc on my Federal Return, there are two conflicting answers: One says to prorate, the other says to enter full amount and TurboTax will prorate to Schedule E based on Fair Rental Days and Personal Use Days percentage.
Based on above, I'm not sure which method is correct!
I use TurboTax Premier for Mac.
Thanks,
B
In some cases, TurboTax will make the calculations for you and allocate a portion of shared expenses to the rental property and to the homeowner deductions. In other situations, you must make the calculations yourself. This option depends on how the Property Profile was set up.
If you see the page "Let us calculate your expense deduction for you" (see screenshot below - click to enlarge) and agree to enter the total amounts, TurboTax will make the calculations for you. In this case, you must enter the Rental Use Percentage that applies.
This option appears only if you had zero Personal Use days. If you answered yes to this question, you will see notes about this on any page where you enter expenses that should be allocated (screenshot #2).
If, however, you have Personal Use Days in addition to Rental Days, TurboTax cannot make this calculation for you. Instead, you will see the page "Let's get your rental info in the right place" (screenshot #3). In this case, you need to allocate the costs yourself.