Question

Mortgage Interest Deduction

Forum|Forum|3 years ago
February 17, 2023
1 reply
0 views

Is it true that I can not deduct mortgage interest on a refinance - cash out loan secured by my primary home and use the money to buy a second home.

SantinoD

To clarify, is the second home going to be used as a rental? Or as a second home?

F

Fascilla123Author

The second home is not being used as a rental. However, I think I have my answer. I think I got a little lost in the weeds. The interest paid on the only mortgage I have is for my my primary home. It is not a second mortgage. I'm going to report the interest as a primary home mortgage. But the original lender sold the loan to another lender in 2022, so I have 2 1098s. So I have to figure that out and answer the Turbo Tax questions correctly.

LindaS5247

If you have multiple 1098 mortgage forms, you’ll enter them one at a time in TurboTax. After going through the steps with the first one, you can add a lender when you get to the Mortgage deduction summary screen. (In the case of a refinance, it's best to enter the 1098 from your original loan before the 1098 from your refinance.)

Click here for detailed information and a video regarding entering your form 1098 in TurboTax.

Click here for information on entering multiple forms 1098 in TurboTax.

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