Can I deduct interest paid on a Line of Credit for 2016?

[willucas]

The LOC was an interest only monthly payment we made, with a balloon payment to pay off account done in 2016 as well.

[MichaelDC]

It's hard to tell what the issue is without knowing more about your return. From what you mentioned in the questions, it seems deductible if it's a Line of Credit against your home.

These conditions must be met for personal interest to be deductible:

·         The loan is secured by your main home or a second home. "Secured" means the home is put up as collateral to protect the lender.

·         The home with the secured loan must have sleeping, cooking, and toilet facilities.

·         You or someone on your tax return must have signed or co-signed the loan.

[willucas]

Thanks for the answer Michael, it was secured by my main home. As a follow up, where do I input the interest when doing my deductions in Turbo Tax. Thanks in advance. -Will

[MichaelDC]

Great! Thanks for clarifying. Hope this is helpful. Good Luck!
Here's how to enter your mortgage interest statement whether on Form 1098 or otherwise:
1. Open your return.
(To do this, open the mobile app and click the orange Take me to my return button.)
2. Tap the menu icon in the upper left, select Federal Taxes, and then Deductions & Credits.
3. Select Your Home, and tap Mortgage Interest, Refinancing, and Insurance.
4. Answer Yes to Did you pay any home loans in 2016?
5. Type in the name of your mortgage lender.
6. Follow the onscreen instructions to enter the rest of the information on your 1098 form.
If you think your 1098 may not include amounts you paid for PMI, property taxes or other items at the time of closing, contact your lender.
If you need help reading your closing statement, contact your real estate broker or loan broker, who will be familiar with your particular situation.