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@rgvaldez - The Tax Reform Act limited the deduction of Home Mortgage interest to primary and a second home with a maximum mortgage total of $1,000,000.00 ($750,000.00 for property purchased 2017). We may need additional information to determine the mortgage interest deduction.
Use this IRS link for additional information: Mortgage Interest Deduction
Currently, the IRS allows you to deduct mortgage interest only on primary and second homes on Schedule A. You are also allowed a deduction for rental property on Schedule E
At present, individuals are allowed to deduct the interest on mortgage debt that does not exceed 1 million. That can be any combination of mortgage debt (of any kind) on one's primary home as well as on a 2nd home.
Unfortunately, the mortgage interest deduction isn't available for investment properties; however, mortgage interest can be deducted as a business expense to lower taxable income by filling out Schedule E on your tax return.
Thank you very much for this response, but it has not helped me get past what I think is a flawed question. TT is asking me if a property that has been sold long ago is either a primary or secondary residence. It's neither of the only two options. Bu choosing one of them, it takes me further into questions about this current connection to that property. There is no current connection to either property - it's been sold, I no longer live there, I have moved. This question cannot be answered without lying. It is a flawed and biased TT question that is making it very hard to move through the process. There should always be a third option on such questions, such as "does not apply" or something of the sort - so that particular issue can be sorted in more detail.
Please clarify where you are entering the information from Form 1098. It's possible there is another interview question that might offer a different choice for your circumstance.
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