david3
Level 8
yesterday
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TPs purchased a new house in February with a mortgage greater than $750K. They converted their old residence to a rental property and began renting on 4/1/24.
Per Pub 936 it appears that mortgage interest limitation needs to include the interest on the old residence since the TPs lived in the house more than 10% of the days rented. The lived in the old house for 54 days and rented the old house for 275 days.
What are the mechanics in PS to report the interest limitation for the old house? Do I simply report the principal and interest information in the limitation worksheet for January - March and then allocate the interest from April - December to the rental property?
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