I have an owner occupied multi-family home. Where should I deduct all mortgage insurance and mortgage interest expenses?

[adam7272]

I live in one of the four units in my home and rent the rest. Do I put all mortgage insurance and mortgage interest expenses under the "Rentals and Royalties" section, or would I parse out my owner occupied percentage and put it under my Personal Deductions and Credits?

Thank you for any assistance!

[MinhT]

If you rent out 3 out of 4 units of your multi-family home, the deduction for mortgage interest must be allocated between personal use (1/4) and rental use (3/4).

You will claim 1/4 of the interest on Form 1098 as home mortgage interest in Deductions & Credits (Mortgage Interest, Refinancing, and Insurance)of your personal return.

The remainder (3/4) will be listed as an expense of your business (Rental Properties and Royalties (Sch E)).