If you are buying this property for personal purposes, there is no deduction for paying on a personal loan. However, if the property ends up being a qualified home, you can deduct mortgage interest. A qualified home is the taxpayer’s main home or a second home. A home includes a house, condominium, cooperative, mobile home, house trailer, boat, or similar property that has sleeping, cooking, and toilet facilities.
If the property you are planning to purchase is a qualified home, you can enter the mortgage interest in TurboTax. Please be sure to keep proof of the interest you paid. Here's how to make these entries in TurboTax Online:
1) In TurboTax Online, enter 1098 into the search field (magnifying glass) in the upper right of your screen.
2) Select the Jump to 1098 button. Even if you didn't receive a 1098 for this interest, you can still enter it in this section.
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