Converting residential to rental - proration calculation

timeflies — Mon, 09 Jun 2025 04:36:12 GMT

Hi,

Question about the proration calculation in Turbotax.

I moved out of my personal residential property in Oct 2024, did a refinance, and rented out Nov 2024.

The 1098 from refinance shows the mortgage interests for Nov-Dec, 2024. I also did some repairs to the property in Nov-Dec, 2024.

In Turbotax Premier desktop, I entered the mortgage interests for the 2 months, full repair costs, and manually prorated property tax. Then Turbotax appears to prorate everything once again. And I can't seem to get around this automatic calculation.

Does it make sense to also enter the full mortgage interests from the previous bank, and full annual property taxes to let Turbotax do the proration? How about the repairs during the rental period- how to account for the full amount when Turbotax prorates them?
Thanks in advance.

Re: Converting residential to rental - proration calculation

AmeliesUncle — Mon, 09 Jun 2025 22:10:36 GMT

@timeflies wrote:

In Turbotax Premier desktop, I entered the mortgage interests for the 2 months, full repair costs, and manually prorated property tax.

Then Turbotax appears to prorate everything once again. And I can't seem to get around this automatic calculation.

You are correct in manually prorating it.

When it asks for the number of rental days and the number of personal days, you need to read that screen carefully. If it was converted to 100% rental (no personal use for a year or more), then you enter ZERO personal days.

topic Converting residential to rental - proration calculation in Investors & landlords

Converting residential to rental - proration calculation

Re: Converting residential to rental - proration calculation