HERO/PACE loan

Forum|Forum|4 years ago
March 27, 2022
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Took out a HERO loan for a new roof in 2016. Was able to deduct repayments with Real Property Tax payments (including Principal & Interest). Totally paid off loan in 2021 - how much if any of Interest paid is deductible if I did not receive a 1098 form?

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JillS56

All of the interest would be deductible even if you did not receive Form 1098. You enter the interest as if you received the 1098. Do not enter this as a seller-financed loan. To enter the interest:

Log into Turbo Tax
Go to federal>deductions and Credits>Your Home>Mortgage Interest and Refinancing (Form 1098)
Did you pay any home loans in 2020? Yes
Now enter the answers to the questions as if you have a 1098.
Put the mortgage interest in Box 1
For the mortgage balance outstanding, if you already have a 1098 for the original loan, Put 0 in this box. If this is your only 1098, put in the mortgage balance outstanding. If it is paid off, put 0 in the box.
Do not put any property taxes in this form though because property taxes are not deductible on Hero loans.