topic Mortgage interest on Rental property in Investors & landlords

Mortgage interest on Rental property

vkazhipu — Sat, 01 Jun 2019 03:07:22 GMT

In 2016, I bought a new home and rented out my previous home for 2 months. I have a Mortgage interest on the old home. Can I show the full interest payment under deductions or is it under seperate section?
Should I splitting the total mortgage interest amount?
I only have 2 houses. Primary and one rental.
Also is this same for property taxes? Property tax I paid in 2016 is for year 2015 though. So I lived in the old home for the whole 2015.
thanks for you input.

You should start with Schedule E (Rental Income and Royal...

BMcCalpin — Sat, 01 Jun 2019 03:07:24 GMT

You should start with Schedule E (Rental Income and Royalties) first. Enter your total mortgage interest there as well as the property tax (and your other expenses associated with renting the house). When you indicate that you rented the house out for only 2 months out of 12, TurboTax will reduce the deduction on Schedule E to 1/6th of what you entered (2 months divided by 12); then TurboTax will carry the rest of your interest and property tax over to Schedule A for you automatically.

In schedule E it tell me "Enter the rental portion of mo...

vkazhipu — Sat, 01 Jun 2019 03:07:26 GMT

In schedule E it tell me "Enter the rental portion of mortgage interest reported to you on Form 1098. " Does that mean I calculate and enter interest portion for 2 months and 10 months I enter manually in schedule A. If then it won't match with 1098 value send by bank right? How do I do this?

No, I mean enter the entire amount from the 1098 for inte...

BMcCalpin — Sat, 01 Jun 2019 03:07:28 GMT

No, I mean enter the entire amount from the 1098 for interest on Schedule E. When you indicate that you rented it for only two months, TurboTax will send to correct allocations to Schedule E and Schedule A. Please do not be concerned about the number on either schedule matching the 1098...this happens all the time and the IRS is used to it.