Where do I enter cashout amount for a 2015 refinance?

[manojska]

Hi community,

I refinanced my primary home in 2015 to consolidate a 30 year loan and HELOC and I also took10k cash-out. I did not make any capital improvements using the 10k I cashed-out. Based on the help articles TT provide, I should be able to deduct a portion of my mortgage interest. However, I can not find a place enter this information when I enter my 1098. 

Appreciate if someone help me with this.

[KrisD15]

When you enter the 1098, the program will ask if this was a refinanced loan. 

You will select yes.

Once a loan is refinanced, the remaining loan will always be a refinanced loan. 

Next, the program will ask if you took any cash out, and if so, how much. 

The program will ask what you did with this cash, you will select "Something else, not related to improving the home"

With this information, the program should compute the interest you can claim. 

For example, if this is a 100,000 loan and 10,000 was "cashed out" 

90% of the interest would be deductible. 

[manojska]

Thank you for the response.

The first question I get from TT about the refinanced loan is:

Have you used the money from this loan exclusively on this home?

I select the answer "No, I used some or all of this loan on a different home or something other than a home."

The next question is:

How much of your loan did you use to build, remodel, or repair the property it's secured by?

My answer would be "$0"

And it continues after that without asking me anything about a cash-out, or  the loans I closed out.

Appreciate your help on this.

[KrisD15 · Accepted solution]

Your answer should be the loan amount less the 10,000. 

Don't think of the 10,000 cash-out as the loan amount. 

Enter the ENTIRE amount of the loan (including the amount of the 30 year loan you rolled into this new loan) but not the 10,000 you cashed out and did not use towards the house. 

Example 

remaining 30 year loan was 150,000. 

You refinanced for 160,000 and kept 10,000 cash. 

How much of your loan did you use to build, remodel, or repair the property it's secured by?

Answer would be 150,000

[manojska]

@KrisD15 , in that case this question in TT:

How much of your loan did you use to build, remodel, or repair the property it's secured by?

Should've included 'pay off existing loans' in it, as in:

How much of your loan did you use to *payoff existing loans*, build, remodel, or repair the property it's secured by?

-M

[LindaS5247]

Correct, it would include everything but the $10,000 that you cashed out.