Where should I report mortgage interest if I rent part of each of my two homes? In rental (Sch E) or Deductions 1098?

[becky-a-vanwormer]

I rent out half of each of my two homes and have my family in the other halves. I don't want to double deduct the morgage interest, should I even list it in the Sch E? I feel like it's double-deducting mortgage interest as a rental expense and again as mortgage interest.

[PatriciaV]

Enter the mortgage interest from Form 1098 under Schedule E (Rental Properties) first. Because you are renting part of the property, TurboTax will allocate the personal portion and report that amount under Itemized Deductions (Schedule A). 

However, double check that result to make sure it does not include mortgage interest that is allocable to the aggregate indebtedness greater than $750,000.  If it does, you will need to manually adjust the amount.

[becky-a-vanwormer]

That was how I initially entered the data but there was nothing represented in the mortgage interest section of my personal deductions to show that the personal portion of the mortgage interest was being counted. I figure I could just count one of the houses as rental and add its mortgage interest and property taxes in schedule E, and the other house I can leave mortgage interest and property taxes out of schedule E and only enter the 1098 in deductions, but that's not really how we use the houses. I really rent out part of each and would like my taxes to accurately represent that. It's there a way to tell that my mortgage interest is being split between rental and personal expenses correctly if nothing is listed in the deductions section under 1098 forms, mortgage interest, and property taxes? 

[DianeW777]

Yes, you can review your tax returns before you file. It is important to allocate the correct interest to each rental. TurboTax will allocate the mortgage interest. You can use the link below to review your itemized deductions and your Schedule E by using the information below.

You have access to all forms when you choose to print your return in TurboTax Online/Mobile.  However you are required to pay before printing, but do not have to file until you are ready.

• Can I print a copy of my return in TurboTax Online before filing?

If you are using TurboTax Desktop you can switch to Forms and review all forms and worksheets.

@becky-a-vanwormer