I am stuck with my 2nd mtg as I do NOT have a 1098 and there seems to be NO way around it and Turbotax won't let me file electronically. How can Turbotax FIX this issue?

[JulieR]

Was the 2nd mortgage privately financed?

[perkylzd]

It was a disaster loan via the Small Business Administration to make repairs.  They do not send a 1098 because the interest is below the limit.  I've never had this problem before now.

[JulieR]

According to FEMA: "Interest on both SBA loans and home equity loans should be tax deductible as long as the home is used as collateral." https://www.fema.gov/news-release/2004/11/04/sba-home-disaster-loan-vs-home-equity-loan 

If you are using the desktop (CD/Download) version of TurboTax, you can switch to the Forms view (Ctrl +2) and enter this interest directly on Schedule A, line 8 b.  (see sample screenshot below)  

Please note: You will need to print and mail this return. You will not be able to e-file it. 

[Edited 04.10.2019 | 9:37 am pst]

[perkylzd]

This still doesn't help ... I also have a 1st mtg ... no problem I have a 1098 for that and all the information that came on it such as origination date and outstanding prinicpal as of 1/1/18.  But I do not have that information for the SBA loan as I don't get a 1098 from them, so trying to override my entry without that information ...I pay for two mortgages. TurboTax says it can't file electronically.  How do I get it to do that.  I don't want to print and mail my forms ... that is why I purchased the cd.

[JulieR]

Unfortunately, you will need to print and mail this return, rather than e-filing it.  Please see my edited answer.

[perkylzd]

Is it possible for me to do the work around and say it was a seller financed sale ... and enter the address of the SBA and use their EIN?  Will that work at all?

[jimonqa]

TurboTax won't let me enter the Seller Financed Mortgage Interest (no 1098).  This is a subordinate loan to the Original Bank loan which I already entered using its 1098.  Worked last year.

[DMarkM1]

You are correct it should work.  Try deleting the 1098 you have entered and then starting over by entering the seller financed loan first and then re-entering the form 1098 interest information.

Be advised the loans need to be used to buy, build, or improve the home that is secured by the loans and the home needs to be your primary or second home. 

Edited [3/6/2022 6:15am PDT]

[jimonqa]

Thanks for the suggestion.  It didn't work, BUT I then decided to delete the Seller Finance information that carried over from the prior TurboTax return and re-enter it.  That worked!  I truly appreciate your workaround suggestion to this defect.  (If you know of a way to report TurboTax defects, this one has to do with 2020 Seller Finance Mortgage transferred from a 2020 return interferes with entering the 2021 Seller Financed Interest).