I don't seem to be getting any deduction for the mortgage interest - ouch! not acceptable.
I refiinanced twice in 2020. first one took out 50K for house renovations that I never completed and lower interest rate. Then late 2020 got even lower interest rate and took out 250K for a boat that I never got.
The TTax instructions have me add all the interest from the 3 1098s but then I have to add the additional 2 loans right? Also is the $ out going to be taxed as income? How can I avoid this?
You want the total of your mortgage interest that is allowable towards the purchase and improvement of your home. See Sched A line 8 instructions here.
Related: Publication 936 (2020), Home Mortgage Interest Deduction | IRS
Thanks but you sent a link to what I believe is the problem. Our mortgage interest deduction is denied by turbotax saying the standard deduction is higher but it clearly is not. I have to check box 8; we took cashout to fund a business that hasn't started yet but uses of cashout has never mattered to the fed in the past; home refinance at a lower interest rate and taking cashout for various goals is key to achieving the American dream and that's been torpedoed somehow. Our taxes skyrocketed and our income did not; this is killing us. I'm trying to find a tax account to get us out of this disaster