Question

Construction to Permanent Loan over a calendar year end question

Forum|Forum|1 year ago
February 22, 2025
1 reply
0 views

My wife and I started to build our home in June 2023. It was finished in March 2024. When it was completed, the bank we used had us pay off the construction loan with a refinance to a permanent Mortgage. They sent us two(2) 1098s in 2024. The first one was for the interest paid on the construction loan from January 1st to March 15th, and the second one was for the mortgage interest we paid on the permanent loan from April 2024 through the end of 2024.

I can't get Turbotax to treat these as a single related event. It wants to treat them additively and it puts me over $1 million for the cost of the home so it negates my interest credit.

Please help me figure out how to enter these two 1098s properly in the software so that it doesn't look like I have a house that is over $1 million.

Z

zomboo

You didn't specify how you are entering your 1098's. They should be entered in the order of origination date. For the construction mortgage, specify 'This loan was paid off or refinanced in 2024." and "This is not the latest 1098." For the permanent mortgage specify "This loan is a refinance of a previous loan." and "This is the latest or only 1098."