How are my Itemized Deductions split between my home and home office?
Home office expenses like mortgage interest, points, and real estate taxes must be split between home office expenses and Itemized Deductions.
We split them based on the business use percentage of your home. For example, say your business use percentage is 20% and you had $10,000 in mortgage interest, $1,000 in points and $5,000 in real estate taxes. You would enter the total amounts in both the home office section (as expenses for your entire home) and the Itemized Deductions section. Then $2,000 ($10,000 * .2) of mortgage interest, $200 ($1,000 * .2) of mortgage points and $1,000 ($5,000 * .2) of real estate taxes will be reported as home office expenses. If you decide to itemize, $8,000 ($10,000 * .8) of mortgage interest, $800 ($1,000 * .8) of mortgage points and $4,000 ($5,000 *.8) of real estate taxes will be reported on Schedule A.
Keep in mind that your Itemized Deductions can also be limited for other reasons, such as the state and local tax limitation.
We split them based on the business use percentage of your home. For example, say your business use percentage is 20% and you had $10,000 in mortgage interest, $1,000 in points and $5,000 in real estate taxes. You would enter the total amounts in both the home office section (as expenses for your entire home) and the Itemized Deductions section. Then $2,000 ($10,000 * .2) of mortgage interest, $200 ($1,000 * .2) of mortgage points and $1,000 ($5,000 * .2) of real estate taxes will be reported as home office expenses. If you decide to itemize, $8,000 ($10,000 * .8) of mortgage interest, $800 ($1,000 * .8) of mortgage points and $4,000 ($5,000 *.8) of real estate taxes will be reported on Schedule A.
Keep in mind that your Itemized Deductions can also be limited for other reasons, such as the state and local tax limitation.
