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How to Properly enter Refinanced Home Acquisition Debt on turbotax
I refinanced my home mortgage loan AND a the outstanding balance on a separate home equity line of credit (HELOC) into a combined mortgage loan of $1,044,000 in November 2020. All of the loans were and are with the same lender. The old now repaid home mortgage loan was 100% home acquisition debt, had a 2016 origination date, and had a balance of approximately $873K at the time it was repaid and the old HELOC balance was approximately $171K at the time it was paid down. No part of the HELOC balance was home acquisition debt and I have never taken an interest deduction on it. So for 2020 I now have three 1098 forms from the same lender: (1) one that includes 11 months of interest attributable to the original 2016 mortgage loan that should be 100% deductible; (2) one that includes 1 month of interest attributable to the new 2020 combined mortgage loan (intuitively I would think that 83% ($873,000/$1,044,000) of this interest would be deductible); and (3) one that relates to the HELOC that I don't take a deduction for. Looking for guidance on how to properly input all of this in turbotax for 2020 and going forward in future tax years. Thank you.