topic Mortgage Interest in Deductions & credits

Mortgage Interest

camparlene — Thu, 25 Mar 2021 02:36:34 GMT

Why is TurboTax only allowing me to deduct the mortgage interest I pay as part of my co-op fees, and not the mortgage interest I pay for my personal mortgage?

Re: Mortgage Interest

ThomasM125 — Thu, 25 Mar 2021 23:58:05 GMT

You should be able to deduct mortgage interest on up to two properties. Your deduction may be limited based on the entries you made especially regard to the size of your mortgage balance. If you owe over $750,000 on your mortgage, your mortgage interest deduction may be limited.

Re: Mortgage Interest

camparlene — Fri, 26 Mar 2021 00:27:00 GMT

Thanks for the reply, but it doesn't really answer my issue. The mortgages are both for the same property. I live in a co-op in NYC, and the smaller amount is for the underlying mortgage on the building, which is included in my monthly maintenance fees, and the other one is for the personal mortgage on my apartment. And the 2 mortgages together are well under $750,000. For some reason Turbotax is only including the smaller amount for the building.

Re: Mortgage Interest

ColeenD3 — Sat, 27 Mar 2021 19:04:21 GMT

Please see this answer from KatrinaB.

oth of these expenses are deductible as itemized deductions if the Co-op meets certain requirements. You will enter the interest and the property taxes just as you would if you received a Form 1098 related to mortgage Interest.

To enter your Mortgage Interest in TurboTax Online or Desktop, please follow these steps:

Once your tax return is open, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
Next click on “Deductions and Credits”
Next click on "jump to full list" or “I’ll choose what I work on”
Scroll down the screen until to come to the section “Your Home”
Choose "show more", then Mortgage Interest, Refinancing and Insurance

It is OK to show your Co-op interest under the 1098 section of Schedule A. If you are contacted by the IRS, you will just need to provide an explanation of your situation (that your mortgage interest is from a Co-op and provide the IRS with the details of this Co-op interest expense)