Mortgage interest

[danny-lee1]

Hello, does the software calculate the maximum mortgage interest deduction on loans larger than $1,000,000 or do I have to manually calculate the interest paid on $1,000,000 in principal. For example, if I have a $2,000,000 loan do I only enter half of my mortgage interest paid into the software or will the software already cap the write off?

[Fern]

The software will do the calculation for you.

Your Form 1098 should report your mortgage balance at January 1, 2016 in Box 2. In Turbo Tax you will include that amount in your form 1098 input. See screenshot below. After you have entered all of your 1098 forms, you will be prompted to answer questions regarding your mortgage balance. See screenshot below.