Question

Home Mortgage Interest Limitation Smart Worksheet Issue?

Forum|Forum|4 years ago
February 8, 2022
1 reply
0 views

When using step by step entry for my Form 1098 (only had one), after I changed to forms mode, and looked at Home Mortgage Interest Limitation Smart Worksheet, I noticed for Item C: "Were all loan proceeds used to purchase, build, or improve the home secured by this loan?" neither Yes nor No were checked.

As the entire loan was used to purchase the home, I tried checking Yes. Lines 8 and 9 in G below both populated, and my refund changed about $1,000 in my favor.

Is this a known issue? Why wouldn't that have filled in correctly?

AmyC

Employee

Some things get picked up in the review process. You are smart to check. The full amount is deductible on a new mortgage within the allowed mortgage balance limitations and dates. See Changes to the Deductibility of Mortgage Insurance Premiums (MIP) | Internal Revenue Service (irs.gov)

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"