 Then we have the limit when loans exceed the fair market value of the home now This shouldn't happen normally because normally the bank The bank obviously doesn't want to have a situation where they're giving out a loan and the loan amount is higher Then the value of the home because the whole point of having the home as collateral is to try to make sure that the Person that's borrowing doesn't default on the home So you would expect something unusual happened if the loan balance is greater than the balance of The home but if that unusual situation comes up you could take a look at publication 936 You would think under normal conditions They would want to have like 20% down unless things get weird like they did in the you know the mortgage Crisis and you know the great recession or whatever But and and then the the value of the home would have to go down fairly substantially in a normal condition To for the loan balance to be higher than the value of the home But if the total amount of all mortgages is more than the fair market value of the home You can see publication 936 and then we have line 8 a Enter online 8 a mortgage interest and points reported to you on form 1098 that's the form you'll typically get from the financial institution Unless one or more of the limits on the home mortgage interest apply to you for more information about these limits You could see limits for the home mortgage interest We saw earlier home mortgage interest limited if your home mortgage interest deduction is limited see publication 936 to figure the amount of mortgage interest and points reported to you on form 1098 so that's where you're gonna go if you hit those limits again that are deductible only enter online 8 a the deductible mortgage interest and points that were reported to you on form 1098 Now remember that the IRS is gonna have that form 1098 just like they do with the 1099s and the W2s and so on and the 1098 is reporting something that possibly could be Deductible to you so you would expect then that the iris would want you to report the amount on the 1099 1098 or something lower right because if you put something lower than the amount on the 1098 the iris is fine with that because then you're gonna pay They're not gonna come after you for reporting less interest than possibly you could have but and so But if you report something higher than the amount that's given to you on the 1098 You're getting a deduction higher than the amount of the form that would indicate you get the deduction That's when you would think the iris would be more likely to question that position, right? So refund or overpaid interest if your form 1098 shows any refund or overpaid interest Don't reduce your deduction by refund instead see the instructions for schedule 1 form 1040 line 8z so Same situation with like the state sales tax for example Where we said if if you got to deduct the state sales tax, I mean sorry the state sales tax and the oftentimes the state income tax If you got to deduct the state income tax in the prior year and then you got a refund Do you have to go back and amend the prior year tax return or do you just record it as income in the current year? similar situation here although far less common if you deducted interest in the prior year and then they Refunded that interest in the current year. Do I have to go back and fix the prior year or more easily? It would be just to include it as income in the current year Then we got more than more than one borrower So if you and at least one other person other than your spouse if filing a joint return because your thought of is one Taxable entity if you're married for the most part. We're liable for and pay interest on a mortgage that was your home You can only deduct your share of the interest So you obviously you might get a 1098 for an amount that really isn't applied to you because you have multiple people That are purchased in the home. You can only deduct the amount applicable to you shared interest reported on your form 1098 If the shared interest was reported on the form 1098 You've received deduct only your share of the interest online 8a let each other borrowers know what their share is You got to tell you got to tell the people The other borrowers their share so that they possibly could deduct it if it's an deduct deductible component possibly as like a business expense or whatever their Interest is to them so shared interest reported on someone else's form 1098 So now someone else got the form 1098 and we think that part of that interest is reportable to us Now this is where it gets messy because remember that we're talking about a benefit here in the deduction So the iris is going to be skeptical if we deduct something more than a 1099 1098 That we received and now someone else received the 1098 and we're trying to report the deduction That would be an unusual situation Typically you would want the 1099 1098 to be assigned to the person that's going to be taken the deduction if at all Possible but some loan structures get get messy So if the shared interest was reported on the other person's form 1098 Report your share of the interest online 8b as explained in line 8b later So form 1098 doesn't show all interest paid So if you paid more interest to the recipient then is showing on form 1098 Include the larger deductible amount online 8a and explain the difference So now you're gonna have to tell the iris because the iris is gonna say hey Look you've reported more than it's on the 1098 and you're gonna have to tell them why so if you are filling out a paper return You can explain the difference by attaching a statement to your paper return and printing C attached to the right of line 8a so you would hopefully not want to have to do that But if you had to do that then you could do that