Hi I bought a home in April 20, 2017, with a loan amount of $456,000 dls
I did multiple refinancing over the years but one of them was a cashout refinance.
In 2020 I took the cash out refinance for $483,750 and the paid off a $431,836 dls. The difference I used to buy something else, so I know that from the new loan I can only deduct about 89% of the interest $431836/$483750*100
So now I'm filing for 2022, there haven't been any other cashout refinancing but I don't know how to put this information in turbotax.
I followed the steps in turbotax (desktop) and since I only have a 1098 this year, I answered that this is a result of a refinance (maybe this is wrong).
The program then asks me at the end:
Since you took out this loan, how much have you spent to buy, improve or build the home its secured by?
What was the balance of the mortgage on December 31, 2022? This is autofilled with $456,433.15
The outstanding mortgage principal in my 1098: $470,029.18
So what figure should I put in that first question? 89% of the outstanding mortgage principal (470029.18)?
