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Level 1
posted Apr 7, 2021 12:44:52 PM

1098

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? 

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1 Replies
Level 15
Apr 7, 2021 1:07:53 PM

is this a 1099-MISC form and they are forgiving the debt?

 

Forgiving the debt is income.  You would need to demonstrate that you paid interest to deduct it.