https://ttlc.intuit.com/community/tax-credits-deductions/discussion/1098/01/2179809#M203934 <P>Sold our home in 2020. Paid off second mortgage (city down payment program, deferred payment, interest based on equity not a particular rate). Received 1098 with equity share amount listed in box 1 (over 40k). Can we deduct the full amount as mortgage interest paid?&nbsp;</P> Wed, 07 Apr 2021 19:44:52 GMT lawson 2021-04-07T19:44:52Z https://ttlc.intuit.com/community/tax-credits-deductions/discussion/1098/01/2179809#M203934 <P>Sold our home in 2020. Paid off second mortgage (city down payment program, deferred payment, interest based on equity not a particular rate). Received 1098 with equity share amount listed in box 1 (over 40k). Can we deduct the full amount as mortgage interest paid?&nbsp;</P> Wed, 07 Apr 2021 19:44:52 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/1098/01/2179809#M203934 lawson 2021-04-07T19:44:52Z https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-1098/01/2179879#M203941 <P>is this a 1099-MISC form and they are forgiving the debt?</P><P>&nbsp;</P><P>Forgiving the debt is income.&nbsp; You would need to demonstrate that you paid interest to deduct it.</P> Wed, 07 Apr 2021 20:07:53 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-1098/01/2179879#M203941 NCperson 2021-04-07T20:07:53Z