I'm having a ton-o-fun with my 2019 home mortgage interest deduction calculations. 1098 forms for 5 different lenders over 3 years (purchase, 2 refi's, 2 loan sales) and the 2019 refi has points, so TT is already not being cooperative. But I digress. This question is about my original mortgage.
It's a 2018 VA mortgage, with the VA funding fee rolled into the loan, and I'm currently doing my 2019 taxes. The loan was sold, twice actually, prior to my first mortgage payment. Fortunately, there were no points or anything that needed to be spread over the course of the loan. The VA funding fee is over $10,000 -- is it considered home acquisition debt? It's 2.15% of the loan principal, do I need to decrease the interest reported on my 1098 Box 1 by 2.15% when I enter it into TurboTax?
If I do, that means I did it wrong on my 2018 taxes, but I need to file a 1040X anyway, because I didn't know to deduct the VA funding fee itself.
Thanks,
Rebeccah
