I bought a property that has my home and a separate rental cottage on it. Do I enter all mortage interest from Form 1098, or half since I only rent half the property?

Forum|Forum|1 year ago
July 6, 2025
1 reply
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TurboTax says to enter all mortage interest and it will allocate my personal portion over to the deductions section. But Iʻm concerned that itʻs assuming I rent the entire property for which I have a mortgage (I only rent out the rental cottage - not my home

pk_

Level 15

@mana1o , do you still need help on this ?

Generally, I would enter an allocated amount for mortgage interest and property taxes on schedule-E ( rental income ) based on square footage. Note that there is also depreciation for the rental portion of the property ( again you have to allocate the a portion of the total acquisition cost and land underneath for purposes of computing depreciable basis.

That portion of mortgage interest and property taxes not allocated to the rental property is eligible for use for your itemized deduction ( if you use that rather than standard deduction ).

Is there more I can do for you ?