I found a thread here on this topic that had a lot of replies but no resolution.
I bought a house in 2020, it was sold 5 months later to a different mortgage servicer.
The Box 2 and 3 are the same on each 1098 (original loan amount and original close date). The 1098 where the mortgage was sold shows a non-blank acquisition date.
If you enter all of this as two 1098s into TurboTax (along with the different amount of interest paid to each of the servicers, it doubles the loan amount, which is incorrect. So if the original loan was 750k, it thinks you took 1.5M of loans and only gives you 50% deduction on the sum of the two interest paid values (incorrect).
The 'workaround' is to put $0 in box two of the original mortgage servicer and $0 as the end-of-year balance on that same servicer to trick TurboTax into thinking that you don't have two loans. Obviously this is not the intention by TurboTax or the IRS.
What is the correct way to input this (very common) situation into TurboTax?
