Divide the mortgage interest and property taxes amounts and report them
separately under each section (rental section and home section).
When entering your
mortgage information, you can divide the amounts of mortgage interest, mortgage
insurance and property taxes between the number of days (or
months) the home was your residence and the number of days (or months) the
home was a rental property.
For example, if your mortgage interest is
$12,000 and your home was only available for rent for 5 months, then
$5,000 will be allocated to your rental (Schedule E) and $7,000 will be
allocated to your home mortgage interest deduction (Schedule A). Report each portion
separately under the corresponding section in TurboTax (see below).
Please note that if your home was available for
rent for 9 months but only rented for 5 months, you will allocate your
mortgage related expenses based on rental availability regardless of how
long it was actually rented. Using the example information, you would allocate
$9,000 (the months available for rent) to your rental property instead of
$5,000 (months actually rented). TurboTax will automatically allocate any
portion of the mortgage interest not available for use under the rental section
(Schedule E) to your personal deductions section (Schedule A) in this
situation.
To enter your rental mortgage interest (for
TurboTax Online sign-in, click Here)
in TurboTax Online or Desktop, please follow these steps:
- Once you are in your tax
return, click on the “Federal Taxes” tab ("Business" tab in
TurboTax Home & Business)
- Next click on “Wages &
Income” ("Business Income and Expense" in TurboTax
Home & Business)
- Next click on “I’ll choose
what I work on” (jump to full list or see more income)
- Scroll down the screen until
to come to the section “Rental Properties and Royalties”
- Choose “Rental Properties and
Royalties” and select “start’ (or “update” is you have already worked on
this section)
Enter your rental
property information through the TurboTax guided questions (or edit your rental
property if it is already entered) until you come to a screen that is titled,
Your "rental property name" rental summary.
Select to edit your
rental expenses>I'll choose what I work on> click through several screen
until you get to one titled "Report Mortgage Interest". Put your
mortgage interest from Form 1098 here.
For any portion of your mortgage interest, insurance
and property taxes related to your home use;
To enter your Mortgage Interest and Mortgage
Insurance in TurboTax Online or Desktop, please follow these steps:
- Once you are in your tax
return (for TurboTax Online sign-in, click Here), click on the “Federal
Taxes” tab ("Personal" tab in TurboTax Home & Business)
- Next click on “Deductions and
credits”
- Next click on "jump to
full list" or “I’ll choose what I work on”
- Scroll down the screen until
to come to the section “Your Home”
- Choose "show more",
then Mortgage Interest, Refinancing and Insurance and follow the onscreen
instructions.
To enter your Property Taxes in
TurboTax Online or Desktop, please follow these steps:
- Once you are in your tax
return, click on the “Federal Taxes” tab ("Personal" tab in
TurboTax Home & Business)
- Next click on “Deductions and
credits”
- Next click on "jump to
full list" or “I’ll choose what I work on”
- Scroll down the screen until
to come to the section “Your Home”
- Choose "show more",
then Property Taxes and follow the onscreen instructions
