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manven
Returning Member

How to divide the mortgage interest and property tax in my 1st and 2nd home when I rent it out part of the year

I bought a 2nd home in July 2021, I moved in to the 2nd home in Sep 2021. I rented my 1st home in November 2021. I have property tax and Mortgage interest and HOA from both 1st and 2nd home.

In Turbotax when I enter the rental income and expense, there is a place it asked how long the property is rented out and how long I used as a personal property, I entered the no of days I used for personal and number of days I rented it out. When I enter the property tax, Mortgage interest and HOA costs, whether I need to enter the Mortgage interest, Property tax and HOA for all 12 months for the 1st home? and Turbotax will calculate the ratio I used it for the personal vs Rental? or I calculate the prorated amount for Mortgage interest, Property tax and HOA for the period of I rent it out? 

When I enter the personal deductions, I have  property taxes,  mortgage interest and  HOA for both 1st home and 2nd home, when I enter the personal deductions, should I add them together and enter as the Total mortgage interest, Total Property tax and Total HOA? Need help on this. 

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4 Replies
ColeenD3
Expert Alumni

How to divide the mortgage interest and property tax in my 1st and 2nd home when I rent it out part of the year

You are entering information as if it were a vacation home, not a conversion. Delete Schedule E and start over. In the first screenshot, you would select conversion. In the second, you will enter the second part of the screen. Say, mo you have not always used it for business and that it was converted in November. prorate business and personal expenses and enter the proper amounts on the Schedule A and Schedule E screens.

 

manven
Returning Member

How to divide the mortgage interest and property tax in my 1st and 2nd home when I rent it out part of the year

Thanks @ColeenD3  

in the 2nd screenshot you mentioned that I need to choose this house got retired in 12/31/2021, 

I did not sell this house, do I still need to choose this option? 

ColeenD3
Expert Alumni

How to divide the mortgage interest and property tax in my 1st and 2nd home when I rent it out part of the year

No, only pay attention to the bottom half of that screen.

manven
Returning Member

How to divide the mortgage interest and property tax in my 1st and 2nd home when I rent it out part of the year

Thanks. 

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