How to calculate excess mortgage for Schedule A in Lacerte

Follow these steps to enter information to calculate the excess mortgage:

1. Go to Screen 25, Itemized Deductions (Sch. A).
2. Select the Excess Mortgage Interest section from the left menu.
3. Input the information in the applicable fields:
   1. Lender's name (code 820)
   2. Form [Ctrl+T] (code 416
   3. Activity name or number (code  417)
   4. 1=taxpayer, 2=spouse, blank=joint (code 496)
   5. Interest paid (code  401)
   6. Total principal paid (code 404)
   7. Beginning of year (either in Home Acquisition Debt or Home Equity Debt sections):
      • Home Equity Debt is used when the loan was used for other things (code 410). Enter the Percentage that benefits the home (.xxxx) (code 511).
      • Home Acquisition Debt is used when the loan was used for purchase/improvement of home (code  407)

Mortgage related deductions entered in Screen 25, Itemized Deductions, within the Excess Mortgage Interest section should not be entered elsewhere.  If using this input section, remove mortgage-related deductions from the regular interest section of this screen, from Screen 29, Business Use of Home, and from any vacation homes or owner-occupied rentals entered in Screen 18, Rental and Royalty Income.