JohnB5677
Expert Alumni

Deductions & credits

Do not add them together.

 

The IRS instructions for completing Form 1098 state that box 2 should be the amount of principal outstanding on the mortgage as of January 1, 2021.  If the loan was no longer being serviced by that company, there would be no outstanding principal on that mortgage and the amount should be "0".  

 

Entering '0' into box 2 in your tax return is the correct way to handle a loan that has been closed out.

 

In your case you should have 3 zero's.

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