It should also transfer. I suggest you go back through your entries for the 1098 Mortgage Interest statement (on the federal side) to confirm all the questions are properly answered. Alabama complies with federal law for this deduction, so make sure you have answered the questions properly as to whether the mortgage secures your primary residence. Also, make sure it is interest for acquisition cost and not an equity or cash out refinance used for other purposes than to buy, build, or improve your home.
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