All of the interest would be deductible even if you did not receive Form 1098. You enter the interest as if you received the 1098. Do not enter this as a seller-financed loan. To enter the interest:
- Log into Turbo Tax
- Go to federal>deductions and Credits>Your Home>Mortgage Interest and Refinancing (Form 1098)
- Did you pay any home loans in 2020? Yes
- Now enter the answers to the questions as if you have a 1098.
- Put the mortgage interest in Box 1
- For the mortgage balance outstanding, if you already have a 1098 for the original loan, Put 0 in this box. If this is your only 1098, put in the mortgage balance outstanding. If it is paid off, put 0 in the box.
- Do not put any property taxes in this form though because property taxes are not deductible on Hero loans.
