Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
jcore58
Returning Member

Home Mortgage deduction for 2 loans prior to Dec-2017

I have 2 home mortgages for 2 different homes, both originating prior to Dec-2017.  Loan 1 is $700k ($20k interest), loan 2 is with co-borrower so each have $200k, $8k interest ($400k O/S and $16k interest on 1099).  I input the Loan 1 amount and half the Loan 2 1099 interest amount.  I would expect all $28k of the mortgage interest to be deductible since the total mortgages were less than the $1million limit (after 2017, I know the limits are $750k).  No issues last year but my deductible interest is less than the total (about $8,000 less).

 

For giggles I input everything in one line ($900k mortgage and $28k interest) and all interest was deductible.  

 

I see the known bugs for refinanced mortgages, but both of these were prior to the Dec-2017 dates so wonder if others have similar issues.  

1 Reply
Cynthiad66
Expert Alumni

Home Mortgage deduction for 2 loans prior to Dec-2017

Yes.   There is a known problem with Home Mortgage Deduction.  TurboTax is working to fix the problem and the many other issues. There are many changes due to the CARES Act that require software upgrades.  We have not been given an  expected date for the fix yet.  Please check back often to see if you can file your return.

 

OR

 

Since your workaround  is yielding the correct deduction then you can use that.  IRS is looking for the correct numbers.

 

OR 

 

In the meantime, you can try this work around.  You did not provide the details of your Mortgage situation and therefore I am giving you a general work around that might help.  Please try this.

 

If there is a refi and there was an outstanding mortgage principal listed in both of them on Line 2 on the 1098. When you do put an outstanding balance in both forms, then the program adds them together and if that number is greater than $750k, then it puts you in the category to "limit interest". To get that to go away, you need to go back to the deductions section and click on "edit" mortgage interest statement. Change the line 2 of the mortgage that you no longer owe on (like the one that you refinanced and paid off) to a 0 (zero) because you have refinanced out of that loan and no longer have an "outstanding mortgage principal". Once you change one of them to zero (the one that was paid off by the refinance) then it should no longer pop up with that error at the end when you go to file. 

Dynamic AdsDynamic Ads
Privacy Settings
v