Deducting Mortgage Interest

[Chris S.]

I own a two family---live in one half and rent out the other half.

I have losses on the rented half -due to expenses , mortgage interest, etc exceeding rent.

My accountant tells me that i can't deduct this loss on the rental due to I and my wife's AGI exceeding the limits.

The accountant is only deducting half of my mortgage interest on my itemized deductions.

Can I move the other half of mortgage interest (from the rental) to my itemized deductions?

Thanks!

[Bill Walston]

I agree with your accountant on this one Chris. If an expense is for both rental use and personal use, such as mortgage interest, you must divide the expense between rental use and personal use. Only the personal use portion can be used for itemizing your deductions.