When you enter the 1098, the program will ask if this was a refinanced loan.
You will select yes.
Once a loan is refinanced, the remaining loan will always be a refinanced loan.
Next, the program will ask if you took any cash out, and if so, how much.
The program will ask what you did with this cash, you will select "Something else, not related to improving the home"
With this information, the program should compute the interest you can claim.
For example, if this is a 100,000 loan and 10,000 was "cashed out"
90% of the interest would be deductible.
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