How do I deduct boat mortgage interest not reported on 1098?

[jerryco2lins]

I saw previous answers, but those options aren't available. It appears the system forces you into a 1098 situation,

[PaulaM · Accepted solution]

If you boat qualifies as a second home, then the interest would be deductible. You are correct in that the interest would be recorded as if you received a 1098 form. This is because the IRS form is geared to a second 'home' not a boat. 

But boats and RV's can qualify as second homes if they meet the second home definition, and interest is entered correctly in the 1098 section to flow to the correct line on your schedule A.

See link below.

http://www.discoverboating.com/resources/article.aspx?id=65

[jerryco2lins]

Thank you for the information. When I enter it that way it shows as interest report on a 1098 which creates an unmatched 1098 at the IRS and an inquiry back to me. I just had to deal with one from a previous year. Perhaps I can manually modify the schedule A to move the interest to line 11 instead of line 10?

[PaulaM]

Let me check..

[PaulaM]

Mark the box 'I did not receive a 1098' on the 'Tell us more about your loan from (lender) page. This will flow to line 11.

[jerryco2lins]

I don't actually have that screen with my version of TurboTax.  When I enter the bank name, the next screen I see has this heading "Do any of these uncommon situations apply to your loan with Bank of America?" and three options. While it is not applicable in reality, I suspect I choose "The seller is financing this loan and I didn't receive a 1098." and that will force it to the correct location on Schedule A.  I will verify when I get the return complete. Thank You so much for helping me find the hidden option.

[PaulaM]

You are welcome 🙂

[shawnnoonan1]

I am in this situation. Did choosing the option "seller is financing the loan and did not receive a 1098" force it to line 11?

[Big-Blue-Pommy]

I took the same option with a TT rep on the line, .. not seller financed and no 1098. The interest flows to Sched A line 10 and NOT Line 11.
The 1098 received box remains ticked on the form view - not changeable to the 1098 not received box. Dump of file sent to TT ("send to agent") and told case closed via email 2 hours later and pointed to this answer ....correct box still not checked . It worked last year but not this (2017)

[Big-Blue-Pommy]

After talking to TTax technical support - determined that after entering lender name, step 1 have to select "Seller Financed and no 1098" as option - then Step 2 select "Seller financed - YES"  and enter the bank details as the seller! - only then correctly populates Schedule A line 11 and adds bank details. Need Fed ID. legal name and address of bank.. this latter requirement in NEW this year .. TTax will try to fix navigation / wording as took an hour with a "highest level" tech expert to figure out!

[gbeard4]

He we are a year later and still have the same issue with TT.  Have to follow the above instructions and verify the info is deposited into the correct blank on the form.