If the Mortgage Interest is for your main home, you would enter the Mortgage Interest as an Itemized Deduction. Beginning in 2018, the limitation for the amount of home mortgage interest is limited to the first $750,000 ($375,000 for married filing separate) of indebtedness. The entry would be made by selecting:
- Federal Section
- Deductions
- Itemized Deductions
- Mortgage Interest and Expenses
Where do I enter my rental home's mortgage interest?
If you have Mortgage Interest for your rental home, you would enter the Mortgage Interest as an expense on your Schedule E. The entry would be made by selecting:
- Federal Section
- Income
- Rents and Royalties Schedule E
- Expenses
- Mortgage Interest
What if I lived in the house I rent?
If you lived in the home for part of the year and then converted the home to a rental, you will need to allocate the Mortgage Interest and claim a portion in both areas of the return.
Please Note: The same Mortgage Interest cannot be claimed on both the Schedule A as an itemized deduction and Schedule E (or Schedule C) as a rental expense.
Home equity loan interest is no longer allowed if the proceeds were not used to buy, build or improve your home.
Additional Information
For more articles and information on mortgage interest click here.
For instructions to the Schedule E, click here.