Heloc - Outstanding Mortgage Principal

[brianfarwick]

I have a 1098 form from a HELOC.  The 1098 does not show box 2 original mortgage principal.  I withdrew funds on 1/17/18.  So my outstanding mortgage principal on 1/1/18 is 0.  Turbo Tax is giving me errors saying I must have a value.  Technically I did have a 0 dollar balance on 1/1/18. I paid back the funds on 3/23/18.  

[KrisD]

If you had a 3 month home equity line of credit in 2018, and did not use the funds to buy, build or improve the home, do not enter the 1098. The interest paid on that loan will not be considered as Home Mortgage Interest since it was not used on the home. 

This is a new tax change for tax year 2018. 

[brianfarwick]

I used the HELOC on the 1st home to put as a down payment on second home.  Then once 1st home was sold I paid off the HELOC.

[KrisD]

Then don't enter it. The loan must be secured by the home on which it is used. Even if used on a second personal residence, the interest will be disallowed as a deduction. The loan must be secured by the property on which is used. I will add a screenshot to the original answer. You can also read this by clicking the "What's new with mortgage interest this year" link in the program.

[brianfarwick]

Thanks Kris - I was afraid not to enter the 1098 since I received it.  It was even more confusing because it asked the outstanding mortgage principal on 1/1/18.  Technically I did not have a balance then but the balance was later in January.  The desktop version does not allow a 0

[brianfarwick]

I also don't see the whats new in the desktop version

[KrisD]

No, it won't take a zero, but you can leave it blank.

[brianfarwick]

Desktop app takes a blank??

[KrisD]

Yes, I just did a test, as long as box 3 has a 2018 date

[KrisD]

But it won't be deductible, as I pointed out above since it wasn't used on the property that secured the loan.

[brianfarwick]

Thanks

[brianfarwick]

My box 3 has a 11/09/2013 date.  Box 2 is empty.  This is why i was confused.

[pca2008hi]

I attempted this solution and left box 2 blank, and still recieved error "Outstanding mortgage principal must have a value.

[pca2008hi]

Left Box 2 blank and changed Mortgage origination date from 2013 to 2019, and it accepted it, but won't this generate an error with the IRS as this does not reflect the information displayed on the 1098 that was filed with the IRS.

[dancemom]

Ditto to the above question.   I received a 1098 for 24 cents of interest (paid on the annual account fee) and the prinicipal balance is zero.  I’m assuming that because the interest was accrued on my maintence fee balance in 2019 that the mortgage origination date would be 2019?