Home office some months only and mortgage interest deduction

[slara22]

I had a home office for 7 months in 2021. I am not itemizing deductions, upon Turbo Tax’s recommendation. Two questions:

-Can I NOT claim mortgage interests for my home office if I am not itemizing deductions? If I can claim them, where would I do so, because Turbotax asks to uncheck the lender record box if I am not itemizing.

-Because I only have a home office for some months of the year, I am splitting the total mortgage interests I paid that were reported on my 1098. I am entering 2 “lenders” instead of 1: lender “a” has the interests corresponding to my home office months and lender “b” has the interests for the personal months. Is this ok, or will it raise a flag with the IRS because the amount reported in the 1098 was neither of those from lender “a” or “b” but the combination of both?

Thank you!

[Cynthiad66]

No.  Since you can no longer claim home office deduction you can just claim your home mortgage interest on Schedule A itemized deduction as it appears on the form 1098.

There is no need to split the interest deduction because you cannot claim the home office deduction.

In 2017, the Tax Cuts and Jobs Act suspended tax write-offs for home office deductions through 2025. That means if you are an employee who gets a W-2 from an employer, you are not eligible for the home office deduction -- even if you're working from home.

Click Here for more information

@minnie-09

[slara22]

Thank you, @Cynthiad66 

I am not itemizing deductions, as per Turbo Tax's recommendation (standard is better for us).  But still, I cannot claim mortgage interest for my home office, correct?

A follow-up question. The other reason I am breaking the 1098 total amount is that the months I did not have a home office, I was abroad and meanwhile i rented my home at fair market value, for the entire rest of the months. 

So–am i correct to assume that I cannot claim mortgage interests for my home office but ii can for the rental. And would it still be preferable to split those amounts up? part for renta, part for personal (no home office). But these amounts differ from my 1098, as they are divided into 2. Would it be problematic to the IRS to see my mortgage interests split into 2, instead of a 1098 for the full amount? ? Thanks so much

[Cynthiad66]

No you cannot claim mortgage interest on your Home Office.

The IRS will recognize that you have a rental and it was part year.  

You can deduct the interest on the rental.  If you answer the interview questions for the rental property accurately, TurboTax will automatically compute the correct deductions for the Schedule E Rental.  If you enter the number of months the property was rented, TurboTax will pro-rate the deductions.

Please check to ensure that the deductions are accurately prorated.

@slara22

[slara22]

Thank you, @Cynthiad66 

I am not itemizing deductions, as per Turbo Tax's recommendation (standard is better for us).  But still, I cannot claim mortgage interest for my home office, correct?

A follow-up question. The other reason I am breaking the 1098 total amount is that the months I did not have a home office, I was abroad and meanwhile i rented my home at fair market value, for the entire rest of the months. 

So–am i correct to assume that I cannot claim mortgage interests for my home office but I can for the rental? And would it still be preferable to split those amounts up? Part for renta, part for personal (no home office). But these amounts differ from my 1098, as they are divided into 2. Would it be problematic to the IRS to see my mortgage interests split into 2, instead of a 1098 for the full amount? ? Thanks so much

[slara22]

Thank you, @Cynthiad66 !