How do determine if I have a mixed-use mortgage loan?
I am trying to determine if the home equity loan that I took out is mixed-use and how do I enter it into Turbo Tax Premier so that it is reported correctly. I took out a $175,000 home equity loan, secured by my main home, on property with FMV greater than $200,000. $85,000 was used to pay off my original mortgage. $90,000 was used to pay off school loans. I don't make enough money to have any itemized deductions phased out.I know the $90,000 is equity debt and as long as it is under $100,000, then the interest on that part of the loan is fully deductible. I do not have any other mortgages.
(1) First is the $85,000 considered acquisition debt and therefore all interest is deductible?
(2) If I have categorized both types of debt correctly, how do I enter this into Turbo Tax. Publication 936 shows all kinds of average principle balance calculations for the different kinds of dept, but Turbo Tax is not asking questions like that. It simple ask how much interest was shown on the 1098 and does not break it out between dept types.