Have two properties and 3 forms 1098 for total two loans amount over $1m,
Main home, loan 900k purchased in 2022, no issue with entering or how TurboTax is calculating.
Second home - purchased in 2023 , Original Loan A of $308k and $7k of interest in box 1, loan A was transferred to Loan B mid-year, with Loan B reporting additional $9k of interest. When entering all information, TurboTax reports $7k of interest under as interest from loans excluded from limitation worksheet. What am I not entering correctly?
here is my entry:
Loan A entered first:
- marked as "second home" and entered all information from boxes 1, 2, 3
- my bank form does not report any points, so none of the boxes checked for section "tell us about any points paid to....."
- answered "NO" to question "is the 1098 you're working on now the most recent for your loan"
- answered "This loan is neither of these" to the next question " Is this loan a home equity line of credit or a refinance of a previous loan?" -
- answered "Yes" to the question that loan was used exclusively on this home
Loan B, entered after Loan A:
- boxes 1, 2, 3 (mortgage origination date) and 11 (mortgage transfer date)
-
answered "YES" to question "is the 1098 you're working on now the most recent for your loan"
- answered "This loan is neither of these" to the next question " Is this loan a home equity line of credit or a refinance of a previous loan?" - since this is not a refinance.
- answered "Yes" to the question that loan was used exclusively on this home
There is also last section once all is completed: "We need a bit more information to wrap up this deduction": asking the outstanding balance as of January 1st, 2024 for each loan, and when did you make your final payment.
Loan A - this loan was transferred, yet system does not allow to keep zero, therefore, I entered the outstanding balance at the time of transfer (mid-year), also entered 7/1/2023 as made final payment.
Loan B - has outstanding balance as reported on form 1098 (should i look at my mortgage statement instead?) also since loan is not paid-off, there is no date in the next column.
what is not entered correctly for Loan A or B, since my understanding is that all interest should be subject to limitation, however, somehow Loan A interest reported as excluded from limitation worksheet. what is causing this?
