You are correct you should get most of the interest from both loans as an itemized deduction.
- Delete all the Forms 1098 from the "Deductions & Credits," "Mortgage Interest" topic and continue through the end of the topic interview to be sure you will have a clean slate.
- Enter the the 1098 for the old loan. In the follow questions be sure to select that this is NOT the latest 1098 for this loan.
- After answering all the follow on questions you will get back to summary page showing the 1098 you entered
- Do not click "Done" but "Add a 1098"
- Enter the 1098 for the new loan; this time you will select that it is the latest 1098 for the loan
- You will answer that this is a refinance and you used some of the money for purposes other than to buy, build, improve the home
- Use the "Guide" to help figure the deductible amount of interest based on the part of the loan used on the home
- After answering the follow on questions this time, select "Done"
- You will have an opportunity to review the loans and put in the pay off information on the old loan and the and the end of year balance on the new loan.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
