1098 Outstanding mortgage principle on construction-to-permanent loan

[bmciver9]

I initiated a Construction-to-Permanent loan for $1,000,000 on 9/15/21.  As of 1/1/23, I had drawn $458,800 against the loan.  My 2023 1098 shows the Outstanding Mortgage Principle (Box 2) as $1,000,000.  Shouldn’t it only reflect the actual amount borrowed as of 1/1/23?

[zomboo]

Yes Box 2 should should the amount of outstanding principal on the mortgage as of January 1, 2023. You should ask your lender about this. Because this is a line of credit, they may put your potential obligation amount instead. If your average balance is less than $750,000 for 2023, your interest deduction is not limited.