Solved: 2-family house 1098 Box 2
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flamingvan
Level 2

2-family house 1098 Box 2

Under 'Deductions and Credits' I'm entering 1098 amounts for my 2-family house where I rent one unit and reside in the other.  I understand that I should divide the amounts for interest and taxes paid, but what about the outstanding principle?  Should I enter the full amount shown on the 1098 or just a portion of it?

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Accepted Solutions
KrisD15
Expert Alumni

2-family house 1098 Box 2

It wouldn't hurt to split it. 

Since part of the loan is for the rental, that portion of the loan is not limited by the balance limitation for home mortgage interest. 

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2 Replies
KrisD15
Expert Alumni

2-family house 1098 Box 2

It wouldn't hurt to split it. 

Since part of the loan is for the rental, that portion of the loan is not limited by the balance limitation for home mortgage interest. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

flamingvan
Level 2

2-family house 1098 Box 2

I made this change in Turbo Tax (decreased the outstanding mortgage principal) and my federal refund amount increased by a significant amount.  Why would that be?

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