For rental property, Where do I entered the mortgage interest?
I am a California inhabitant. Do I entere the amount on Schedule A as well as Schedule E? Turbo tax question me for the amount in both location. But, at the end, it seems that the total mortgage appeal is higher than the amount received on my 1098.
I have a four-plex and I live in one of the units. For occasion, if I paid appeal of $20,000 for the year, do I report only $15,000 on Schedule E and report the $5,000 on Schedule A? Should I entered $20,000 on both questions for Turbo Tax to calculater the income for leasing property as well as the ‘credit’ section for Turbo tax?
Please help me out with this? Is this also applicable for the property taxes paid during the year?
I be grateful for your advice.
You will only report the total appeal once, split between Schedule E and Schedule A. You are right that if you paid $20,000 total and you lived in one part of the four-plex, then 75% ($15k) would go to Schedule E and 25% ($5k) would go to Schedule A. The same applies for real estate taxes.
You are also right that you should NOT report the full amount both places within the program. TurboTax likely assumes that you will split the total appeal yourself.
You place the appeal paid on your mortgage on Schedule A, but place the leasing income on Schedule E.
If it’s mortgage appeal on leasing property, it goes on schedule E. If it’s mortgage appeal on your personal residence, it goes on schedule A. You don’t take the same appeal in both places. And yes, same answer for property taxes. Since you live in one of the four units and the other three are leasing units, 1/4 of the total amount would go on schedule A, the other 3/4 on schedule E.