I am co-owner of a rental property with three other partners, all with equal shares. Each partner has their own mortgage/loan that they used to finance their share of the property. Where can I enter my personal mortgage interest as a deduction against the rental property income?
Also, where can I enter deductions for a home office related to the rental property?
Mortgages can be considered money loans that are specific to property. If they are incurred for the purpose of earning income by renting property to tenants, the interest portion of the mortgage is deductible on line 8710 (Interest and bank charges) of the T776 Rental Income form. Only the interest portion of the mortgage is deductible, and the interest is only deductible in the original term of the loan.
TurboTax Online:
Step 1) Go to Find and type: Rental Summary and click Go.
Step 2) Edit the information if you already inserted or Enter New Rental Income.
Step 3) Enter the information in the Real Estate Rentals Statement and click Continue.
Step 4) Select the checkboxes that apply to your situation (don't forget Rental Expenses) in the Rental Profile and click Go
Step 5) In the form T776 Rental Expenses enter the Interest amount
Step 6) Click Continue to save your entries.
For more information about the entry of office expenses, please see our TurboTax article/video The Landlord’s Toolbox: A Guide to Claiming Expenses on Rental Properties
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Because this is a partnership with 4 partners each owning 25% of the rental and each with their own loans, the interest on the T776 Interest section of Rental Expenses is for the partnership as a whole, not for the individual partner, as indicated at the top where it says "do not include any personal portion of these expenses". So where can I enter the personal portion of interest? Should I multiply my personal interest by 4 and enter that, knowing it will attribute 25% to me?
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