Thank you
I have spent hours with bank with no answers and see no relevant examples in my IRS publications regarding the 1098 "previously deducted interest". I figured I would have to visit a tax attorney.
For the covid forebearance I was told that the payments (principal and interest) would be saved at the end of the mortgage with no accrual of additional interest. But no one at the bank can explain how the "previously deferred interest" (pdi) is calculated or if it could be deducted on the year of the 1098. I was concerned that not deducting the pdi might "lose" deducting it later.
Do you know how "previously deferred interest" is calculated?
I have requested payment history to check that there is no negative amortization.
When I pay the interest at the end of the loan or when I sell, will my 1098 show the interest I pay that year or in some way be affected by the "previously deferred interest" of previous 1098s?
Mathematically, will all the PDI amounts equal the interest due at the end of the loan?
Obviously confused but very appreciative that an expert answered so soon that I do indeed just deduct what I pay each year using cash basis and will be able to deduct the interest I pay at the end of the loan.
Thank you again
