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Mortgage interest deduction cap and multifamily home
I live on the top two floors of a multi family home and rent out the bottom floor. I have created the duplex rental property in the income section and figured out how to get the correct amounts entered for the 33% of the home that is rented out, including the mortgage interest. My question is about the 66% of the mortgage interest that gets allocated to my personal deductions. The outstanding mortgage on the property, even after 33% is removed, is above the $750k cap. TT does not seem to be taking this account - and specifically tells me not to enter my bank’s mortgage information as it will double count the interest - and does not know the size of the loan. Is it possible I can deduct all of the non-business expense interest even though the non-business share of the loan is in excess of $750k? If not, how do I fix this?
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Mortgage interest deduction cap and multifamily home
this doesn't seem to be a situation that Turbotax can handle automatically. if I'm wrong I'm sure someone will correct me. the way i would handle it is to manually allocate 1/3 of the interest and taxes to the rental then for the 1098 enter 2/3 of every amount.
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as i understand the rules let's say the mortgage is $1.5 million. there is no mortgage limit for rental so $500K would go there and on the 1098 entries you would report $1 million as the home debt and 2/3 of the interest and taxes (if taxes are on the 1098) .
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