Deductions & credits

@DaveF1006 Thank you.

 

To make sure I understand what you're recommending:

1) Enter my second home 1098 exactly as is, and then indicate the remaining balance is 0 (which I think comes as a later question about that mortgage being paid off in 2020)

2) Combine the two 1098s for my primary home together in one entry (as that was the home I refinanced)

 

The question later that is tripping me up is whether I took out cash. The answer is yes, but this cash was used to pay the second home loan off entirely. Is that why it's limiting it (and is that what should be happening)? The mortgage balance is well-under $750K

 

Does this mean for this year (and future years) that because I refinanced with cash out on my primary home to pay off my second home (which again, the total principal on the new loan is slightly less than the combined principal of the two homes before refinancing as I brought a little cash to refinance) that I can no longer deduct all of the interest moving forward? I understand what TurboTax is saying as far as refinancing, but it seems to make the assumption that it's one home being refinanced as opposed to two homes being refinanced into one loan. That is what is completely throwing me off as to what to enter.