HERO loan interest deduction on property taxes pain in 2018 and 2019

Forum|Forum|7 years ago
June 3, 2019
9 replies
43 views

I have a HERO loan in California. The annual payment is on my property taxes and I paid part of my taxes in 2018 and part in 2019.

I think I can deduct the interest portion of the HERO loan. There is no 1098 form from the HERO program. I do have a table provided by the HERO financer that tells me how much the annual interest amount it.

Do I treat the interest deduction like a property tax and claim part in 2018 and part in 2019, do I treat it like a property loan and deduct the interest in the year it was charged, or is there a hidden option #3?

TurboTax Premier Windows

Anonymous

Although included in the tax bill, the HERO payments are separately stated and not deductible as property tax. But, the portion of the HERO payment that represents interest is generally deductible as home mortgage interest.

Rivers11

Level 2

I have the same basic question but where/how do I enter the deduction? There is no 1098 issued and the only option Turbo Tax gives for no 1098 situations is to identify it as seller-financed loans. Is that the proper place to claim it?

CM00

Level 2

I have the same question for 2020.