Question

rental coversion to primary residence midyear - where and how to enter 1098 mortgage interest and taxes

Forum|Forum|1 year ago
March 16, 2025
1 reply
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I am confused about how and where to enter amounts from Form 1098 Mortgage Interest for a property that was converted from a rental to our primary residence on 07/16/2024. So... it was a rental for the first 54% of the year, then it was our primary residence for the remaining 46% of 2024.

Do I enter the 1098 taxes and interest in the rental info section? I did answer the questsions regarding how many days the property was used as a rental, and then entered 0 for personal use days, as we moved in and it became our primary residence.

I have found conflicting information about whether or not Turbo Tax will divide the 1098 amounts for me based on the days entered in the rental section (and if so, where to enter the 1098--rental or deductions section) or if I need to manually caluculate percentages and enter them separately into the rental section and then later in the deductions section under mortgage interest.

A

ajhachAuthor

and if I need to manually enter the pro-rated amounts, do I check the box in the deductions section that says I am entering amounts different than what is on my 1098?

AmyC

In the general profile section, when you select for the program to do the math, it takes the rental portion and moves the rest to sch A. If you are doing the math, you will enter the correct amount each place. Since you know the percentages, I recommend you enter the correct amounts yourself as part of the direct expenses.

Your total is the same and the IRS only sees the tax forms. As long as your total 1098 interest is less than or equal what you received, you are in good shape. You may be limited on your personal Sch A for itemized deductions if the property is over $750,000 balance.

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