in Home loans
1527581
loan balance exceeds home loan $474,833.72 12/14/2012 sold 8/5/ 2019 Int of $9838.52 New loan $740,043 9/5/2019 pts $8325 Acquired loan $740,043 10/23/2019 int $6465. It is asking if one or both apply for either going over the $750 limit for this year and under the 1M for the old loan. Do neither apply since we are under the 1M for the first and it is sold, the second with the points and interest puts it over so do we not claim the interest. At a loss for what to do
You'll need to sign in or create an account to connect with an expert.
I wouldn't worry about it. You are under $750,000 because the test is based on the AVERAGE balance for the year.
i think there is a bug in the TT program (unless it was recently fixed)... when you answer that question about the $750 / $1mm you get the opposite result than you expected. if it is still occurring, answer it the opposite way. You want to be sure your interest is NOT limited.
So I should say that neither circumstance applies? I added up the mortgages and interest and divided it by 2 and it comes in around $620,000. So I think I am doing this right?
while it won't matter as the result will be the same (all interest is deductible), the intent is to take a 12 month average which would mean your 12 point average is well below $620,000.
For 2020, when that comes around suggest doing likewise but it could be your 12/31/19 mortgage balance already amortized below $750,000 and it won't matter. But if it does matter, use a 12 point average in 2020 as well!
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
ckstanley12
New Member
in Home loans
RoadRunner3
Level 1
in Home loans
lkw22192
New Member
in Home loans
Fishaholic88
Level 1
in Home loans
Layne7
Level 1
in Home loans