topic Outstanding mortgage principal on 1/1 has no balance for HELOC, TT review complains. 12/31 had principal for home addition. How do I get past problem of $0 on 1/1? in Investors & landlords

Outstanding mortgage principal on 1/1 has no balance for HELOC, TT review complains. 12/31 had principal for home addition. How do I get past problem of $0 on 1/1?

TT-User2 — Tue, 04 Jun 2019 22:14:21 GMT

When entering 1098, TT wants the beginning balance as of 1/1. The loan is a HELOC and had a 0 balance on 1/1. The HELOC was used for a home remodel, so at the end of the year there was a principal balance and mortgage interest was paid. TT review complains that the beginning balance cannot be 0. How do you fix this so TT does not complain in the review? Or is this a TT bug?

If you have a 2018 origination date in box 3 (and you sho...

KrisD — Tue, 04 Jun 2019 22:14:25 GMT

If you have a 2018 origination date in box 3 (and you should if you had no balance on 01.01.2018) you can move forward in the program. Leave box 2 blank.

The program won't like box 2 blank, but once you enter a 2018 date in box 3 and click continue, you can move forward and the error is cleared.

The problem is that the loan origin date is in 2017 as th...

TT-User2 — Tue, 04 Jun 2019 22:14:27 GMT

The problem is that the loan origin date is in 2017 as this is a HELOC. It is perfectly valid for a HELOC to have a 0 balance at the start of a year during the life of the HELOC. The solution works as described with a 2018 date, but does not work with a 2017 date. This prevents the error from clearing.

Re: The problem is that the loan origin date is in 2017 as th...

Geoff Alexander — Sun, 10 Apr 2022 08:39:55 GMT

I also have this problem for my 2021 Taxes. Seems like a bug in TurboTax.

Re: The problem is that the loan origin date is in 2017 as th...

LeonardS — Sun, 10 Apr 2022 14:45:34 GMT

The amount in box 2 is used to determine if your loan exceeds the $750000 threshold. Form 1098 is an informational form that is not matched by the IRS. If you know your loan balance, year-end statement for 2021, or your current balance you may use that amount for box 2. This will allow you to proceed and will not impact your tax return.