Hello
When providing that number, is this asking for the existing balance total or only "my portion" of the balance? ie let's say I own 50% of a property, should I use 50% of the total amount? I am assuming it's the latter?
All mortgage related questions in TT specify when to enter one's share vs. the total amount, but this one doesn't, so I wanted to double-check.
Thank you.
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If your mortgage is $750,000 or less, it won't matter if you enter the entire balance or only 50% of the balance, because all of your mortgage interest is deductible. If your mortgage is more than $750,000, your deduction could be limited.
A little history:
The IRS originally said that the limitation is a "per residence" limit so you should enter the entire amount of the balance. This was supported by the Tax Court, but then the 9th Circuit reversed that decision and said it's a "per person" limit for unmarried co-owners, so enter just your 50%. The IRS agreed to go along with that, so at this point, it looks like you could enter just your 50%.
Thank you, very helpful, esp. the background information.
FWIW, I just got off the phone with one of the Intuit CPAs/Tax expert one can get in touch with...the person I talked to was less knowledgable than you are. So, thank you :).
I'm glad I could help!
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