If including the entire balance my return significantly drops. Do I only include the portion I am liable for or the entire balance?
You are liable for the entire balance if you are on the mortgage. You can split the mortgage interest and the property taxes anyway you agree, but you cannot split the mortgage principal balance.
(If you could split the mortgage principal; balance, you would be improperly avoiding the mortgage loan balance limitations for the mortgage interest deduction).
I may be wrong, but it's my understanding that if you are filing MFS, you enter total amounts and the program will do the splits for you, provided you elect the option (if presented) to have the program do the splits. I am unable to verify that at this time.
Oh no...crap.
To be clear, even though I only list my portion of the interest and property tax and we are filing separately, the entire principle should be reported on my taxes? We are both listed as borrowers so I figured if splitting everything else why would I not only be responsible for my portion of the principle.I came to this conclusion after reading this short thread- https://ttlc.intuit.com/community/taxes/discussion/since-you-are-splitting-the-interest-you-will-also-split/01/465646#M191598
Do you know of other articles/threads addressing this topic?
Thanks in advance for your patience!
From what I see in the CD version of the program, you can do it either way. In other words, you can enter total amounts if you elected to have the program "do the splits" for you. Or you can do the splits yourself. It may also matter if you live in a community property state also. I don't live in such a state myself. So not sure what options you would be presented if you do.