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Mortgage Interest Deductability

thetaxdoctor
Level 1

Hi,

If there is a client that has a mortgage that has an outstanding balance of $1.5 million. The mortgage interest is only deductible up to 750,000 balance of an outstanding mortgage so why is the software not limiting the deduction? The system is still deducting 100% of the mortgage interest, but shouldn't it be limited if the balance is above 750,000?

 

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Just-Lisa-Now-
Level 15
Level 15

I think this is the button youre looking for to make it automatically limit the deduction (I find the worksheet is rather clunky and makes me struggle)....but if its exactly 50% of whats allowed, you could just enter the deductible portion on Sch A.

mortdedcut.png


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Terry53029
Level 12
Level 12

It depends on date of mortgage. A lot of people don't like the worksheet, but if you do fill it out it is as quick as looking up the rules, and then the software will do the work for you.