I opened a HELOC in August of 2022 against my current home at the time. I used $250,000 from the HELOC for a down payment to purchase a new primary home. After purchasing a new primary home in September of 2022, I sold the original primary home and paid off the HELOC in November 2022.
I have received a 1098 for the HELOC with interest paid of $2000. There is a $0.00 amount in box 2 for the Outstanding Mortgage Principal. As I click through the questions in TurboTax Deluxe:
1. I click this is for my primary home
2. I fill out the fields for the 1098 as per the form received in the mail (with the $0.00 amount in Box 2)
3. I click YES to the question that the loan is secured by a property of mine.
4. I click that there were NO POINTS for the loan
5. I click NO to the question "is this the most recent 1098 for this loan.
6. I click "that this loan is a HELOC"
The next page then states (Congrats You Get a Tax Break)
I DO NOT get asked what I used the HELOC funds for?
The main question I have is do I have to enter $250,000 in Box 2 of the 1098 even though the 1098 has $0?
Keep in mind I did open and payoff the HELOC all in 2022.
I understand that this interest isn't deductible since I didn't use it on my primary home at the time. I just want to make sure I enter this properly as the way I am entering it with $0 in Box 2 of the 1098 gives me a tax break.
