topic Home Sold/Bought - Multiple 1098s - Interest On Schedule A Incorrect in Get your taxes done using TurboTax

Home Sold/Bought - Multiple 1098s - Interest On Schedule A Incorrect

Chris We — Fri, 26 Feb 2021 19:26:51 GMT

I sold and bought a home in 2020 and received 1098 forms for both properties. Everything is entered into TurboTax correctly and the EasyGuide shows my mortgage interest as ~$23k which is correct. However, with all the other deductions I have, I still don't beat the standard deduction, which seems wrong.

When I check the Schedule A form, it says the interest deduction is ~$15k, which doesn't match any numbers on the two 1098's. I can't edit the number directly since there's two of them, but the forms are in the tool correctly.

The total mortgage interest paid in 2020 is ~$23k. Couple that with taxes paid, sales tax, etc. and the itemized deduction should be about $10k higher, beating the standard deduction.

I understand they capped the home mortgage to $750k, and the new home is over that by about 10%, but old home was well under the $750k mortgage number. Seems I should be getting 100% of the old home's interest and ~90% of the new home's interest. As it stands right now, Turbotax is adding the two properties together and using that as the home value to calculate the % of interest I'm allowed to deduct, but I didn't own the two properties at the same time. If I only enter one or the other property, the value is correct. So it has to do with selling the old property and how the two are being used together.

Any ideas?

Thanks.

Re: Home Sold/Bought - Multiple 1098s - Interest On Schedule A Incorrect

MarilynG1 — Fri, 26 Feb 2021 21:11:35 GMT

Does the 1098 for the home you sold show $0 as Outstanding Mortgage Principal?

If not, go back to that 1098 entry and make the change.

If this does not resolve the error, click this link for more info on Mortgage Interest Incorrectly Limited.

Re: Home Sold/Bought - Multiple 1098s - Interest On Schedule A Incorrect

Chris We — Fri, 26 Feb 2021 21:59:30 GMT

On the 1098 it shows the mortgage balance at the time of selling, back in March. I tried just putting a 0 in for the remaining balance in TurboTax and it would not accept it, but it would accept $1. Doing that seems to have corrected the Mortgage Interest value to what I expected.