Question

Do I enter the 1098 even if the loan was refinanced for my ex wife and I was paid out half of the equity?

Forum|Forum|5 years ago
February 22, 2021
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No, do not report this 1098 on your tax return to claim the mortgage interest deduction.

Under these circumstances the mortgage interest would not be deductible. The property (and loan?) is now in your ex-wife's name and none of the loan proceeds were used to buy, build, or improve your home.

For tax years 2018 through 2025, you can only deduct the interest from the amount of your loan that was used to buy, build, or improve the home that it’s secured by (and this deduction is only available for your main home and a second home).