I have an open Home Interest Loan that I use to cover the cost of remodeling my home. The limits are all well under the thresholds stipulated by the IRS. In the Home Mortgage Interest Limitation Smart Worksheet, the calculations recognized that the ending balance was great than the beginning balance and calculated an Average Loan Balance and corresponding acquisition interest expense. I borrowed approximately $4,000 in 2018 against this account to remodel a bathroom, an expense that the IRS appears to allow. How do I enter this amount in line F4 of the HELOC Smart Worksheet?
Change the Jan 1 balance to match the 12/31 balance -TT hasn’t figured this bug out yet
I'm having the same problem. Is this a known bug by Turbo Tax? I'm not sure to wait until the bug is fixed or do what you are recommending. Do you know if the IRS receives the beginning and ending balances from our 1098 and will recognize a discrepancy if I enter a beginning balance that does not match?
I am not too sure but my guts are telling me that yes they would probably recognize it if you were to start off with a discrepancy. The stats would always have to balance before they are able to compute what you have entered and take that into record.