topic Split Mortgage Interest and Taxes due to Rental in Investors & landlords

Split Mortgage Interest and Taxes due to Rental

brianinmaine — Mon, 02 Mar 2026 12:42:53 GMT

This past year we started renting out space above our attached garage. We rented it in Sept, Oct, Nov and December and that space represents about 23% of our overall square footage of the house.

In TT I entered the following:

1. Its a single family )home where a single family lives) - Is this correct?

2. I put that I rent out part of my home

3. It was not rented all year

4. It was rented for 122 days

5. I will enter the amounts and let TT do the calculations

6. I enter 23% for rental use percentage

I then entered the total rental income for those 4 months of renting.

As for expenses I put in only the 4 months of expenses (insurance, property taxes, mortgage interest) by taking the total of each, dividing by 12 and then multiplying by 4.

TT then calculated the 23% of each of those on my schedule E.

So on my schedule E for real estate taxes for example it shows: (total real estate taxes was 6492)

2164 as the total with 498 as reported on schedule E (for the rental) and 1666 for personal us (I entered 2164 because that is (6492/12) * 4. TT then calculated the 23%

On my schedule A it shows 5994 for real estate taxes (which the 498+5994 comes out to total 6492)

Did I do this correctly? Between the two areas the total comes out right, so it seems I have done it correctly, but want to make sure. I have done the same for mortgage interest.

Re: Split Mortgage Interest and Taxes due to Rental

AnnetteB6 — Mon, 02 Mar 2026 13:07:36 GMT

For the situation you described, it looks completely correct. I don't see anything that was missed.

Re: Split Mortgage Interest and Taxes due to Rental

brianinmaine — Tue, 03 Mar 2026 15:59:54 GMT

Thank you. One last question. As I mentioned this is an apartment above our attached garage. We have rented it out for 4 months in 2025. We do not use a rental management company, we advertise on something called Furnished Finder. With that being said, does this fall under Qualified Business Income?

Re: Split Mortgage Interest and Taxes due to Rental

MaxA1 — Thu, 05 Mar 2026 00:42:17 GMT

It depends. See the following link for information on how to qualify your rental activity as Qualified Business Income (QBI):

Can I get the QBI deduction on rental income?