Question

Outstanding mortgage principal on 1/1 has no balance for HELOC, TT review complains. 12/31 had principal for home addition. How do I get past problem of $0 on 1/1?

Forum|Forum|6 years ago
June 4, 2019
1 reply
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When entering 1098, TT wants the beginning balance as of 1/1. The loan is a HELOC and had a 0 balance on 1/1. The HELOC was used for a home remodel, so at the end of the year there was a principal balance and mortgage interest was paid. TT review complains that the beginning balance cannot be 0. How do you fix this so TT does not complain in the review? Or is this a TT bug?

TurboTax Deluxe Windows

KrisD15

If you have a 2018 origination date in box 3 (and you should if you had no balance on 01.01.2018) you can move forward in the program. Leave box 2 blank.

The program won't like box 2 blank, but once you enter a 2018 date in box 3 and click continue, you can move forward and the error is cleared.

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T

TT-User2Author

The problem is that the loan origin date is in 2017 as this is a HELOC. It is perfectly valid for a HELOC to have a 0 balance at the start of a year during the life of the HELOC. The solution works as described with a 2018 date, but does not work with a 2017 date. This prevents the error from clearing.