RENTAL INCOME ALLOCATION OF MORG INT AND PROP TAX

Forum|Forum|3 years ago
February 10, 2023
1 reply
21 views

Hi to all. Client has rental income on primary house and got 1098 from lender. I filled it out SCH E and 1098 as well although software shows allocated to personal use but did not allocate on SCH A for MORG INT AND PROP TAX. Do you have any insight? Need a help.

ProSeries Professional

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TaxGuyBill

Level 15

@HOPE2 wrote:

rental income on primary house

Can you clarify the situation?

Was it 100% their primary home, then converted to 100% rental?
Was it pretty much their primary home for the entire year, but they entire home was rented for a few days? If so, how many days?
Or did they rent out a portion of their home, such as a room or two?
Something else?

HOPE2Author

Level 7

84 DAYS RENTED THE ALL SPACE OF HER HOME AND THE REST OF THE YEAR has been AS PRIMARY HOUSE. I ENTERED PERCENTAGE OF OWNER-OCCUPIED RENTAL FOR 23% AND I SEE PROP TAX AND MORG INT SPLITTED OUT TO SCH E AND PERSONAL USE on ALLOCATED PERSONAL USE column BUT WHATEVER I HAVE ON 1098 LENDER as PROP TAX AND MORT INT, flowed ON SCH A LINE 5 b.

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TaxGuyBill

Level 15

Owner-occupied generally means the owner is living there, and only rents out a portion of their home. So I would not use that.

So just to confirm, it was their home, rented for less than one year, and then their home again? It was not their home, then rented long term (and not their home again afterwards)? It is a big difference in how to enter things.

What did you enter for the number of rental days and the number of personal days?

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