I sent payments to cover interest on a HELOC loan. Form 1098 received does not show any payment. Do I report what was sent and check the "different" box in TurboTax?
Also, do I report all interest charged to the loan account or only the amount I re-paid?
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You can only deduct the amount paid. And yes show the actual amount paid in the "other" Box.
The interest for a home equity loan or HELOC (home equity line of credit) is an allowable deduction if you itemize. You'll need to meet some conditions:
In most cases, you can deduct your interest. How much you can deduct depends on the date of the loan, the amount of the loan, and how you use the loan proceeds.
The IRS has more information on how much you can deduct and other relevant details.
Thank you for the reply to my post.
However, I incorrectly described the loan. It is NOT a HELOC loan, it is a HECM (Reverse Mortgage Line of Credit). Does this change things? If so, can I still deduct points, interest, mortgage insurance? Do I check the HELOC box in TurboTax or list in some other way?
Interest on reverse mortgage lines of credit is only deductible when it is paid; typically, the interest accrues and is only paid when the loan matures (i.e. is paid off).
From the IRS Are the proceeds I receive from a reverse mortgage taxable to me?
Interest (including original issue discount) accrued on a reverse mortgage isn't deductible until you actually pay it (usually when you pay off the loan in full). Also, a deduction of interest may be limited because a reverse mortgage generally is subject to the limit on home equity debt, which is not deductible unless the proceeds are used to buy, build, or substantially improve the home that secures the loan. For information on deducting mortgage interest and the debt limit that applies, see Publication 936, Home Mortgage Interest Deduction.
If you are paying the interest as it accrues AND meet the other mortgage interest deduction limitations (mortgage balance and use of funds), then it is deductible in the year paid.
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