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Deductions & credits
Yes.
- For X company, state that you refinanced the loan;
- For Y company put "$1" in Box 2 (the program will not accept "$0");
- For Z company, in Box 2 enter the loan amount as of 12/31/2020.
Entering $1 in box 2 for Company Y will not have any effect on your tax calculation and will not generate an error in either TurboTax or with the IRS, From an economic perspective, it is accurate - you owed virtually nothing on this mortgage at the end of 2020.
There are many places in TurboTax where you must make a non-zero entry, primarily to let the program know that you answered the question and that the answer makes some sense.
In this case, entering "$1" tells the program that you didn't forget to answer the question and that you had at least some amount of a mortgage loan balance to justify claiming an interest deduction.
March 15, 2021
9:59 AM