You must cut back the idea of your principal residence by the amount you exclude. The curiosity you paid at settlement ought to be included on the statement. If it isn’t, add the curiosity from the settlement sheet that qualifies as home mortgage interest to the entire proven on Form 1098 or comparable assertion. Put the whole on Schedule A , line 8a, and fasten a press release to your return explaining the difference. If you paid $600 or more of mortgage interest on anybody mortgage to a mortgage holder in the middle of that holder’s trade or business, you…
