When asking for information of a cash out mortgage loan TurboTax asks:
"How much of your loan did you use to build, remodel, or repair the property it's secured by? ___________"
However if you go to the specific line on the smart worksheet it asks:
"Were all loan proceeds used to purchase, build, or improve the home secured by this loan?
If no, amount used to purchase, build, or improve this home is: ____________"
Based on the later, should the software question include the loan payoff amount?
e.g. "How much of your loan did you use to payoff previous loan, build, remodel, or repair the property it's secured by? ___________"
It must be included if you want the correct prorated interest. Unless there is another way to arrive at the correct interest allocation.
