Hi @Cynthiad66
"Check back" where specifically? This has been outstanding for months and its not as though the CARES Act was just put into action... why is Intuit being so quiet on such an impactful issue. Or are we missing something as users? Is there a knowledge base or expert that know about this issue that can weigh in on if the software will eventually be supporting this vs asking users to implement complicated workarounds?
In the absence of proper communication from Intuit, can you address my situation and the proposed solution (that I have had to build through literally reviewing hundreds of support posts)? Hoping to understand if indeed I am using a "best practice workaround" that is backed by an Intuit Expert.
Situation:
I had 2 "loans" in 2020 (for which I have interest and points to deduct).
Loan 1 for Home 1 - I sold this home in December of 2020. The loan originated before 2017 and was for less than $1MM. I received 1 1098 from the Bank (we'll call Bank A)
Loan 2 for Home 2 - I purchased this home in August 2020. The loan originated in 2020 and was for more than $750k. Adding to the issue, Loan 2 was sold to another bank (not refinanced) in 2020, so I received 2 1098s for this loan (from Bank B and C). The original loan included points.
Proposed Solution - the guidance I received (on-demand knowledge base and many support posts) on how to solve this in TT Premier desktop
For Loan 2 (to address multiple 1098s for a loan that was sold to another lender):
- Add the Mortgage Interest Received, Mortgage Premiums (if any) and property tax amount from each form and enter the totals for the original lender only in TT.
2. Enter the remaining items from the original lender 1098 loan for the Outstanding Mortgage Principal (Box 2), Mortgage Origination Date (Box 3), and the checkbox on box 7 (address of property securing the mortgage)
For calculating the deductible interest on the 2 loans (Loan 1/Home 1 - originating before 2017 and less than 1MM and Loan 2 - originating after 2017 and more than 750k)
Home 1 ($1mm limit)
- Calculate the average balance - (beginning balance + ending balance)/2
- Calculate the percentage to deduct -1,000,000/ average balance = 1 (do not go over 1 or 100%)
- Calculate the deductible amount of Interest - $total interest * 1 (Report on Box 1 on the 1098)
- 4. Deductible Interest =$18,000 (Enter for Interest on Box 1 on 1098 for new home)
Home 2 ($750,000 limit)
1. Calculate the average balance - (beginning balance + ending balance)/2
2. Calculate the percentage to deduct -750,000/ average balance (do not go over 1 or 100%)
3. Calculate the deductible amount of Interest - $total interest * percentage to deduct (Report on Box 1 on the 1098)
Box 2- Make sure to enter $0 on each 1098.
Total Amount of Interest Deducted on my Tax Return = deductible amount of interest on Home 1 + Home 2 (+ deductible points)
