AmyC
Expert Alumni

Get your taxes done using TurboTax

1. Box 2 wants the balance on Jan 1, 2021 - when you had a mortgage and balance. You need a balance or the program will not give you credit for the interest paid.

2. The condo was your main, then your house. If you want to claim the condo as a second home for ease in entry, you can. It is not distinguished on the sch A. The itemized deductions just list the total. The program is trying to make sure that if you are over the $750,000 limit that the calculations are being made properly for each property.

3. If you want, just add the forms together. Remember, this is just the program trying to figure out what is deductible. The forms are for the same house. You did not cash out or increase the balance when the bank sold your mortgage. There is no real effect. The program is looking for cash out, etc. This is what I would do:

Enter either mortgage company, enter the balance at purchase, enter the total mortgage interest, points, etc paid, call it a first mortgage and don't worry about it. The goal is to have your itemized deductions correct rather than stress over entry.

 

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