I've just found out -- unfortunately, by a client getting an audit letter -- that ProSeries professional does NOT automatically alert me when my client's mortgage interest deduction is limited because the balance of the mortgage exceeds $750,000. Even though, on the bottom of the Form 1098 Mortgage Interest Worksheet, there is box entitled, "Home Mortgage Interest Limitation Smart Worksheet," it's NOT a smart worksheet. I had to go to Schedule A, quick in the box below Line 8 on the "QuickZoom to Home Mortgage Interest Worksheet," and then fill in the information about my client's mortgage amount and interest paid by hand (thankfully, the worksheet does calculate the amount of deductible and nondeductible interest, and then send the deductible figure back to Schedule A).
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.