Refinance with cash out from same mortgage company

[jjslpshds]

I refinanced in June of 2020 and got cash out. The prompt does not let me follow the directions to put the info in from the paid off mortgage. It will not accept zero as the remaining balance. Should I put the new loan balance there and the acquisition of the refi in box 11 which is combining the info from the two? 2 1098's from same loan company.

[Mike9241]

what was the cash out used for?  under the tax laws refinancing for a larger balance on your first or second personal residence (third, no interest is deductible) the interest related to the excess over the balance refinanced is not deductible unless used to improve the residence. 

[jjslpshds]

We refinanced to get cash out to help us purchase a houseboat. I understand that I cannot deduct interest paid since June (date of refi). Shouldn't I get to deduct the interest on the first half of the year? The directions were confusing. It said to combine interest paid from both 1098's, combine property tax from both. That made sense. The next instruction was to put the remaining balance from the paid off loan $0...which then gave me a red error message that it must contain a value. My solution was to put the refi balance as of Dec 31 and the acquisition date from the refi. The origination date I used the first loan. First loan started 8-9-19. Second loan (refi) started

6-5-20. Less than a year later. When I reach the end, the program tells me there are no mistakes, but I am uneasy about if I did it correctly since the directions told me to do differently. I feel I am missing out on 6 months of interest from the original loan.