Yes, divide the mortgage interest, taxes and
insurance amounts and report them separately under each section (rental
section and home section).
Since you converted
the home from a residence to a rental property during the year, you will need
to allocate these expenses between days while home was still a residence and
days when the home of available for rent (whether or not actually rented on day
the home was available for rent)
When entering your
mortgage information, you can divide the amounts of mortgage interest, mortgage
insurance and property taxes between the number of days (or
months) the home was your residence and the number of days (or months) the
home was a rental property.
For example, if your
mortgage interest is $12,000 and your home was only available for rent for
5 months, then $5,000 will be allocated to your rental (Schedule E) and $7,000
will be allocated to your home mortgage interest deduction (Schedule A). Report
each portion separately under the corresponding section in TurboTax (see
below).
Please note that if
your home was available for rent for 9 months but only rented for 5
months, you will allocate your mortgage related expenses based on rental
availability regardless of how long it was actually rented. Using the example
information, you would allocate $9,000 (the months available for rent) to your
rental property instead of $5,000 (months actually rented). TurboTax will
automatically allocate any portion of the mortgage interest not available for
use under the rental section (Schedule E) to your personal deductions section
(Schedule A) in this situation.
