Excess mortgage interest deduction calc in Lacerte

Screen 25 (Sch A). When I enter the FMV at date of last mortgage, it automatically kicks in (allows) the extra $100,000 of home equity debt limitation availability, even when nothing is input for additional home equity debt. 

Before I enter the FMV amount, it uses the $1 million limitation.  My client has only acquisition debt, and I believe the $1 million limit is correct, but when I ignore the FMV input to make the results correct,  the diagnostic keeps telling me I need to enter the FMV amount, which then inappropriately raises the debt limit for the additional $100,000 and allows more deduction.  At the bottom of the input page I can select "1 or 2" to determine the correct limitation, but selecting "1" automatically allows the additional $100,000, and the F1 instruction says I can put in a dollar amount limitation, but it won't let me.

No answers have been posted

More Actions

People come to Accountants Community for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach: