What do I put for interest deduction limits?

Forum|Forum|5 years ago
February 4, 2021
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I'm entering my 1098's and I'm being asked this question: Enter you loan balance as of January 1, 2021, or the final principal balance if you paid off this loan n 2020.

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ReneeM7122

The year ending balance for your mortgage (loan balance as of Jan. 1, 2021 or principal valance if you paid off this loan in 2020) would be found either on a mortgage statement or by contacting your mortgage lender. It doesn't appear on Form 1098.

IRS IRS Pub 936:

Home mortgage interest. You can deduct home mortgage interest on the first $750,000 ($375,000 if married filing separately) of indebtedness. However, higher limitations ($1 million ($500,000 if married filing separately)) apply if you are deducting mortgage interest from indebtedness incurred before December 16, 2017.