Original mortgage in 2012. Divorced in 2017. I refinanced in 2020 to remove my spouse from the mortgage and paid her equity on the house (250K) as part of the divorce settlement. I have 2 1098 forms.
My refinanced mortgage is about $250K higher than the original.
1) Is all the interest that I paid (including the 250K) tax deductible? Or do I need to separate somehow?
2) Where do I input all of this as I'm still trying to figure out how to input two 1098's in turbo tax. (If I use the "workaround" by adding box 1 , interest, and inputting original principal in box 3, it never asks me about a cashout.
original loan $350K (first 1098)
refinanced in 2020. New mortgage $600K (2nd 1098)
thanks
