topic Mortgage Interest Deduction in Deductions & credits

Mortgage Interest Deduction

BobA25 — Sun, 04 Apr 2021 14:22:26 GMT

I have a no cash out refinance and a HELOC for under $30,000. Both loans interest eas deductible last year but is not in 2020 turbo tax. Am I missing something. I entered exactly as 2019.

Re: Mortgage Interest Deduction

NCperson — Sun, 04 Apr 2021 14:27:51 GMT

what did you use the HELOC money for?

maybe it was 2019 that was entered incorrectly and 2020 is correct????

Re: Mortgage Interest Deduction

Carl — Sun, 04 Apr 2021 15:00:18 GMT

I expect the refi is not an issue here since you state there wasn't any cash out. But the HELOC interest may or may not be deductible. It depends on what you used the HELOC money for, as well as "when" you used it.

For example, if you took out the HELOC in 2018 and just banked that money until 2020, then for 2018 and 2019 that interest was not deductible. If you used that money in 2020 to "build, buy, or substantially improve your primary residence", then the interest paid in 2020 would be claimed as an itemized deduction on SCH A.

Re: Mortgage Interest Deduction

BobA25 — Sun, 04 Apr 2021 21:12:43 GMT

HELOC taken in 2007. Not use for buy, build or improve home. Less than $100,000. Currently less than $30,000.

Re: Mortgage Interest Deduction

NCperson — Sun, 04 Apr 2021 21:16:20 GMT

then the interest related to the HELOC is not tax deductible. I wouldn't even enter it into TT..was 2019 entered incorrectly?