I have a construction loan end in 7/2020. The loan amount at the beginning of 2020 is 500K, only exceed 750k since April. After conversion to regular loan, I paid down to 800K. How to show it for deduction?

Beginning balance is 500K. The balance went up to 1 mil in July and I was then paying it down to 800K at the end of 2020.

I put the number from my 1098 form from the bank to Turbotax. Turbotax did ask if the loan balance exceed 750K. I said yes but I didn't do anything.

The outstanding mortgage principle showed in the form is only 500K which is the beginning balance.

How do I deal with this issue?

Expert Alumni

Feb 3, 2021 5:42:21 AM

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I have a construction loan end in 7/2020. The loan amount at the beginning of 2020 is 500K, only exceed 750k since April. After conversion to regular loan, I paid down to 800K. How to show it for deduction?