Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 5, 2019 2:59:01 PM

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

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

0 10 2682
1 Best answer
Employee Tax Expert
Jun 5, 2019 2:59:02 PM

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

10 Replies
Employee Tax Expert
Jun 5, 2019 2:59:02 PM

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

New Member
Jun 5, 2019 2:59:04 PM

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?

Employee Tax Expert
Jun 5, 2019 2:59:05 PM

Let me check..

Employee Tax Expert
Jun 5, 2019 2:59:06 PM

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.

New Member
Jun 5, 2019 2:59:07 PM

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.

Employee Tax Expert
Jun 5, 2019 2:59:08 PM

You are welcome 🙂

New Member
Jun 5, 2019 2:59:10 PM

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?

Level 1
Jun 5, 2019 2:59:11 PM

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)

Level 1
Jun 5, 2019 2:59:12 PM

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!

New Member
Apr 16, 2020 3:30:33 PM

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.