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Returning Member
posted Jan 28, 2021 2:19:08 PM

Mortgage interest deduction limit with 2 different loans and dates

Hi,

I have two loans to deduct interest on. Our primary home mortgage originated in 2012 and was refinanced 2020. Original loan amount was around 425k. Refi amount was 315k. We also have a boat (which qualifies as a 2nd home) that we purchased in 2020. The original loan amount was 500k. How do the deduction limits work with different dates? I understand that the acquisition date for the house is before 12/15/17, so that should qualify it for the $1mil limit, but the boat was purchased in 2020, putting that towards the 750k limit. 

Help!

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5 Replies
Level 4
Jan 28, 2021 4:22:25 PM
Returning Member
Jan 28, 2021 4:27:41 PM

Not really. This is two different loans for two different properties, with two different acquisition dates.

Level 4
Jan 28, 2021 4:32:02 PM

Yes, slightly different, but you will encounter a TurboTax bug because you refinanced in 2020 and will receive two 1098s.

Returning Member
Jan 28, 2021 4:35:07 PM

I’ve figured out the different 1098s, and the lack of a 1098 for the boat loan. My problem is how to figure it with the different dates and different rules. Do I choose Yes or No for the deduction limit question?

Expert Alumni
Feb 4, 2021 6:04:46 AM

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