Vacation Rental Property Sched E vs Sched A Allocation by ProSeries

Forum|Forum|2 years ago
March 24, 2024
2 replies
26 views

Here's a rough version of the scenario:

Client owns vacation/rental property in NC.

In 2023, property rented 150 days, used 10 days personal use, so less than 10%.

In ProSeries, the Sched E worksheet properly splits up the mortgage interest & property taxes into business vs personal use.

But only the property tax piece is carried over to Sched A, not the mortgage interest piece.

So my question ... is this just a ProSeries blip? Or is there a reason the mortgage interest piece does not belong on Sched A?

Individual

This topic has been closed for replies.

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TaxGuyBill

Level 15

@JazzyTaxes wrote:

In 2023, property rented 150 days, used 10 days personal use, so less than 10%.

Or is there a reason the mortgage interest piece does not belong on Sched A?

That makes it NOT their "residence".

The mortgage interest deduction on Schedule A is only for a "residence".

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Terry53029

Intuit Community Champion

If no personal use (less than 10%, or 14 days) then it would be 100% rental, and all taxes, and mortgage interest should go on Schedule E

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TaxGuyBill

Level 15

There is still ten days of personal use, so it need to be prorated. The 14 days/10% is only to determine if it is a personal "residence" or not.

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