I am having the same problem times 2. I bought and sold last year and both loans were sold to new loan servicers.
- House I sold had loan servicer change earlier in the year
- House I bought loan originator sold the loan to a loan servicer
TurboTax is treating this as 4 separate loans which triggers the deduction interest limit.
- I seem to have gotten it to stop processing in the federal as when it popped up on SmartCheck, it brought me to a worksheet (Tax&Interest Deduction Worksheet) which had a Mortgage Interest Limited Smart Worksheet. I entered in Line A2 (Limited amount to report on Sch A) the same amount as in Line A1 (sum of mortgage interest and points on Form 1098). This seems to have resolved the issue on Federal.
- However, in there is no such luck with the NY state return which again counts the loans as 4 separate loans and no similar solution. I tried putting $0 as end balances on all but my actual loan on current home but no luck. The SmartCheck brings me to IT-196 (Deductible Home Mortgage Interest Worksheet) to fill in 2 lines. 1) Fair market value of homes on date debt was last secure by home; 2) Home acquisition debt and grandfathered debt on date debt was last secured by home). I have no idea what to input. Appreciate any help.
