Solved
Cash- Out Refinance
Refinanced a $530,214 mortgage at the end of 2019 to include cash out of $328,654. New mortgage is now $858,868 at an interest rate of 4.5%. The cash out was not used for home improvements. My Form 1098 from new lender shows total interest paid for 2020 based on the entire $858,868. I know I cannot deduct interest on the cash out of $323,654, but can I deduct interest on the $530,214? How would I figure out how much interest to deduct and how would I do this on turbo tax? Turbo tax only asks for total interest and if any portion of cash out was used for home improvements. When I answer that the cash out was not used for home improvements, it appears to now allow any write off of any portion of the loan.
