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jimc-RS
New Member

Do I report combined interest from 2 lenders with refinance? New loan < $750K, do I report lower OR original princ bal? How do I split with spouse on separate return?

I paid down principal to get below $750K.
I file M filing separate, split interest deduction with spouse (50/50)
1 Reply
Carl
Level 15

Do I report combined interest from 2 lenders with refinance? New loan < $750K, do I report lower OR original princ bal? How do I split with spouse on separate return?

You don't say what you're financing. It "could" matter. Your primary home? @2nd home? Rental property that you own? Commercial property you own? You enter each 1098 one at a time.

When entering (and I can't stress this enough) *pay attention to detail*. I can't recall the wording exactly, but for the 2nd one you enter you'll select a checkbox on one of the screens to indicate that it's a refinance of the 1st 1098 entered. (or something like that). If you don't check that box, then the total outstanding on each 1098 are added together. If the total exceeds $750K that creates the issue you're already aware of.

Depending on just what was refinanced, it may also matter if you refinanced with a different lender or the same lender as the original loan. That determines how any amortized points on the old loan are treated.

 

 

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