No 1098 for bridge loan, how to file?

[ptbttax]

In 2017 I had a bridge loan from a local bank.  The loan was secured by the newly purchased home.  That loan was paid off in 2.5 months.  I paid a little over $3K in interest on that loan.  I did not receive a 1098, but was given a printout of interest paid.  Apparently there is no 1098 because it was not a standard mortgage loan.  An earlier Q/A on this topic indicated the loan is deductible because it was secured by my new home.  Since I do not have a 1098 the TT Q&A doesn't have an option for me.  How do I get this amount to show up on Schedule A line 11 instead of line 10?  I tried to edit the form view with no luck.

[MichaelDC · Accepted solution]

Yes, the interest you paid on a bridge loan that is secured by your home may be reported as Mortgage Interest on Schedule A.

Since you didn't receive a 1098, just enter everything when prompted as though you have a 1098. (Because you’ll be entering the equivalent of the amounts from the different numbered boxes of the 1098 without actually having that form).

Please feel free to post any additional details or questions in the comment section.

https://ttlc.intuit.com/replies/4793767

[ptbttax]

Is it going to be OK with the IRS that the TT generated Schedule A line 10 is checked indicating I have a 1098 even though I don't?  When I asked the bank for a 1098 they said they don't provide them for bridge loans so I assume they didn't provide one to the IRS either.

[MichaelDC]

That's perfectly fine. However, if you want to delete the 1098, you can enter the same interest through this path:
Once you are in your tax return, click on the “Federal” tab
Next click on “Deductions and credits”
Scroll down the screen until to come to the section “Your Home”
Choose "show more" if it appears, then Mortgage Interest and Refinancing and follow the onscreen instructions.

[ptbttax]

That's the path I have been taking.  However, there isn't a no-1098 option though that path other than the seller financed path, which is not the case.  So it appears TT doesn't provide an option for my case.  I only see two options: 1) lie and say I have a 1098 or 2) line and say it was owner financed (on the interview/worksheet).  Since the former is a lie to the IRS and the later is a lie to TT I am guessing, only guessing, that option 2 is better.  Taking that option Schedule A ends up with the info on line 11 (not 10) along with the bank name, EIN (which I received today), and address.  Which of the two options is correct?  Or is there a third option?

[MichaelDC]

OK. We missed a check box on "Tell Us More About Your Loan from....". Check "This is a seller-financed loan..." LMK

[ptbttax]

Thank you for your help.  I appreciate it.

[MichaelDC]

More than a pleasure. Good Luck!