We used home for personal use and rental use during the year and are trying to understand how to properly split expenses/deductions between rental and personal use.
We’re trying to input our mortgage interest payments to calculate our net rental income. We are on the Rental and Royalty summary page. We input our rental income, and then under expenses we’ve input pro-rated property taxes and pro-rated insurance amounts in their respective fields and then on the following page for “Report Mortgage Interest” we input our mortgage interest paid (full year per turbo tax recommendations).
On the Rental and Royalty summary page when turbotax calculates the net income on the rental, it doesn't seem to subtracting all the expenses - specifically mortgage interest payment and taxes to calculate our net income.
As an example:
Rental Property for 0.5 of year
Income: $1000
Expenses (Property + Insurance, pro-rated): $500
Mortgage Interest: $250 (full-year, Only $125 would be expected to be used towards rental)
Expected Net Income Value: $375
TurboTax Net Income Value: ~$500
Could someone please explain what we are missing?
