ThomasM125
Expert Alumni

Deductions & credits

Sorry you are having a problem with this.

 

The way I see it, you should get a full deduction for the first loan interest of $1,706. 

 

For the second one, it looks like $161,000 of the $195,000 loan is allowable for full deduction, or 82%. So, if you multiply the second interest of $5,996 by 82%, you get $4,916 as an allowable deduction.

 

I know this is a work-around, but you could just enter the second mortgage interest as the allowable amount and indicate that is was not HELOC. The only thing that will show on your tax return is the allowable interest, it doesn't matter how you got to the number.

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