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April 7, 2021
Question

1098

  • April 7, 2021
  • 1 reply
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Sold our home in 2020. Paid off second mortgage (city down payment program, deferred payment, interest based on equity not a particular rate). Received 1098 with equity share amount listed in box 1 (over 40k). Can we deduct the full amount as mortgage interest paid? 

    1 reply

    April 7, 2021

    is this a 1099-MISC form and they are forgiving the debt?

     

    Forgiving the debt is income.  You would need to demonstrate that you paid interest to deduct it.