I have been following the mortgage interest issue and solutions closely. My question is that I have one bank mortgage with a 1098 and one mortgage held by the previous owner without a 1098. The mortgages added together are less than the $750K ceiling. The interest amounts are showing correctly on Schedule A on lines 8a and 8b, however I am not getting the non-1098 amount as a deduction.
Can I add the interests together and enter the total amount to line 8a even though I do not have a 1098 for one?
Thank you.
Yes, you can make one entry. Keep the documents with your tax return file so that you can explain in the future should you need to. You should have an amortization schedule or other document from the previous owner who is collecting mortgage interest from you as proof of the interest paid.
The accuracy of the tax return with all allowable deductions is what's important. Both of these payments must be to buy, build or improve the home for the mortgage interest to be deductible.
Yes, you can make one entry. Keep the documents with your tax return file so that you can explain in the future should you need to. You should have an amortization schedule or other document from the previous owner who is collecting mortgage interest from you as proof of the interest paid.
The accuracy of the tax return with all allowable deductions is what's important. Both of these payments must be to buy, build or improve the home for the mortgage interest to be deductible.
Thank you. Yes I have all the documentation.
Should I check the box that says the amount is different than the one reported on the 1098 and offer an explanation? Or does that get reviewed?