What does it mean "is this loan secured by a residence of yours?" on Schedule A line 2d? Yes or No. This is for my main home mortgage.

Forum|Forum|2 years ago
April 13, 2024
1 reply
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TurboTax Online

Best answer by KrisD15

It means that the loan is a lien against the property.

Yes, a mortgage is secured by the home.

KrisD15Answer

Level 15

It means that the loan is a lien against the property.

Yes, a mortgage is secured by the home.

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user17748294106

Level 2

Why can't TurboTax present the question in plain English? What is "a residence of yours"? Does TT know the difference between "a residence" and "the residence"? Does it mean the loan can also be secured by other types of things or a non-residence property?

Thanks for posting the answer, nonetheless!😊

user17708643219

Level 6

The reasoning behind the question is that in order to be able to take the interest deduction on the loan, the loan needs to be for acquiring the property and/or to make improvements on the property. For example, if you took out a second mortgage because you needed the money to pay off credit card debt, then the interest you pay on that second mortgage wouldn't be deductible because it wasn't taken out for purposes of the residence; it was taken out for other personal matters. If the second mortgage was taken out to replace a roof on the home, then the interest paid on the second mortgage would be deductible.