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geocbriggs
Returning Member

Mortgage interest double counted

I rent out my condo for a few months of the year when I am at my vacation home.  I enter the mortgage interest I receive from my lender's 1098 and also enter the number of days rented and income I receive from the property manger who handles the rentals.  TT calculates the % personal use of the interest and adds it to the 1098 amount and places it on Schedule A line 8a.  How do I fix this? Do I just not enter in the 1098 data?

 

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1 Reply
DaveF1006
Expert Alumni

Mortgage interest double counted

You should report the 1098 in the rental property section first as a mortgage expense using the information from your 1098. The mortgage expense is now allocated to your rental property in accordance with the allocation percentage between your business and personal use.

The remaining mortgage on the 1098 is allocated to Schedule A.

 

The totals from your rental expense allocation and the amount on Schedule A should equal the amount reported on your 1098.

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