Rental Activity vs Second home on form 1098 Mortgage use section line #2
We have a second home, which is a two-family home, and we rent out one unit. We used to live in this home and always reported it at 50% owner occupied when we were living there. We later bought another home in another state and moved out of the house. However, we left the unit we lived in as a second home and continued to rent out the other unit. Now that it is time to file our return, we have a form 1098 from the mortgage company, and wondering what option to select in the mortgage use section of form 1098 in ProSeries line # 2. Should we select rental activity or second home? Each option results in a different refund amount, and we are not sure which option to select. The second home option gives us a higher refund, but before we choose that, I wanted to make sure we are doing the right thing. Please someone help.
Thanks
