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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]
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.
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]
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).
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