Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

MORTGAGE INTEREST DEDUCTION WORKSHEET - How to figure deductible mortgage interest (MI) and non-deductible MI?

Highlighted
Level 1
last updated ‎December 06, 2019 11:53 PM

 I'm inputting 2 loans that orig. between 10/13/87- 12/15/17. Loan #1 HELOC for student loan debt which is  and Loan #2 is acquisition debt. Loan #1 has interest $1506 and Loan #2 has interest of $1610. Under the TCJA, the HELOC interest should be non-deductible; however, when I enter the info, the software outcome is deductible interest $2022 and non-deductible $1094. Why isn't it allowing just the $1610 MI from acquisition debt loan?

Labels (1)
0 Cheers
1 Solution

Accepted Solutions
Highlighted
Level 15
last updated ‎December 06, 2019 11:53 PM

Home equity loan is still deductible if the loan is used to buy, build, or substantially improve the home with which the loan is secured.

PS will not know the difference and relies on you as the professional to only enter qualified expenses.  As to the amount disallowed, you have probably entries somewhere for the principal so that PS is able to compute a limitation.

I don't use PS and can't speak to the input in PS but my friends who do may step in to give you a more comprehensive response.

---------------------------------------------------------------------------------
Still an AllStar

View solution in original post

0 Cheers
3 Replies 3
Highlighted
Level 15
last updated ‎December 06, 2019 11:53 PM

Home equity loan is still deductible if the loan is used to buy, build, or substantially improve the home with which the loan is secured.

PS will not know the difference and relies on you as the professional to only enter qualified expenses.  As to the amount disallowed, you have probably entries somewhere for the principal so that PS is able to compute a limitation.

I don't use PS and can't speak to the input in PS but my friends who do may step in to give you a more comprehensive response.

---------------------------------------------------------------------------------
Still an AllStar

View solution in original post

0 Cheers
Highlighted
Level 15
Level 15
last updated ‎December 06, 2019 11:53 PM

Cant you just skip entering the HELOC 1098 and only enter the one that's deductible?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
0 Cheers
Highlighted
Level 10
last updated ‎December 06, 2019 11:53 PM
That's what I do.  This year though, the state rules are all over the place so HE int may still be deductible on the state.
0 Cheers