Question

why is my mortgage interest on turbotax higher than my form 1098 interest paid?

Forum|Forum|1 year ago
March 17, 2025
1 reply
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This tax year, I converted my primary residence to a rental property (06/01/2024). Turbotax prompted me to enter interest paid in the rental property section and again in the deductions section and now I am showing a total mortgage interest of 16,572 when my form 1098 total is only 11,699.07

D

DianeW777

When you enter the mortgage interest in the rental and the itemized deductions change the amounts to reflect the correct information. Do not enter the full amount in either location. Since you converted the property June 1, 2024, then you should use seven months for the rental and 5 months for the itemized deductions.

Most accurate would be to use your statements. Take the total from your 1098 and subtract last statement showing your interest paid for your home (January - May) and apply the correct amount to each area. In TurboTax since you converted the rental to 100% in June, you should enter all of the expenses that apply directly to the rental. Indicate it was rented all year at fair rental value (FRV) if it was fully rental after your converted it.

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