☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Mar 27, 2022 3:09:58 PM

HERO/PACE loan

Took out a HERO loan for a new roof in 2016.  Was able to deduct repayments with Real Property Tax payments (including Principal & Interest).  Totally paid off loan in 2021 - how much if any of Interest paid is deductible if I did not receive a 1098 form?

0 1 984
1 Replies
Expert Alumni
Mar 28, 2022 5:05:28 AM

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:

 

  1. Log into Turbo Tax
  2. Go to federal>deductions and Credits>Your Home>Mortgage Interest and Refinancing (Form 1098)
  3. Did you pay any home loans in 2020? Yes
  4. Now enter the answers to the questions as if you have a 1098.
  5. Put the mortgage interest in Box 1
  6. 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.
  7. Do not put any property taxes in this form though because property taxes are not deductible on Hero loans.