topic Sold home Jul 2020 then bought new home Dec 2020. The int paid for sold home was $19,774. The int for new home was $920. How to calculate deductible mort interest? in Deductions & credits

Sold home Jul 2020 then bought new home Dec 2020. The int paid for sold home was $19,774. The int for new home was $920. How to calculate deductible mort interest?

dhinds1234 — Wed, 27 Oct 2021 19:01:21 GMT

Tried using for 14900 to calculate and the additional mortgage in December reduces my deductible interest by more than $7k. How to incorporate 5 months without a mortgage. First mortgage prior to 2017.

Re: Sold home Jul 2020 then bought new home Dec 2020. The int paid for sold home was $19,774. The int for new home was $920. How to calculate deductible mort interest?

TomD8 — Wed, 27 Oct 2021 19:10:04 GMT

Any mortgage lender to whom you paid $600 or more in interest during the tax year must furnish you with a Form 1098 at year's end. If you itemize, you can deduct the interest on up to $750,000 in mortgage debt. The 1098 documents the amount of interest you paid to the particular lender.

Re: Sold home Jul 2020 then bought new home Dec 2020. The int paid for sold home was $19,774. The int for new home was $920. How to calculate deductible mort interest?

Mike9241 — Wed, 27 Oct 2021 19:41:57 GMT

what is the $14,900?

anyway, if the mortgage on your first home did not exceed $1,000,000 and you did not refinance (other rules apply if refinanced) the interest should be fully deductible. on the second home since there seems to have been no overlap of mortgages, as long as the balance did not exceed $750,000 the interest should be fully deductible. also, the debt needs to be acquisition debt and secured debt - a signed instrument that makes the borrower's ownership in a qualified home security for payment of the debt and in case of default the home could satisfy the debt and it is recorded or perfected in accordance with state and local laws.

we can't see your return or the mortgage 1098s so don't know how you've entered the info but separate entries - one for each mortgage are needed.