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.