1. Was the 250k you paid your wife to buy the house from her? If so, it sounds like that is purchase money. If not, the rules change.
2. If purchase, put in the first 1098 with a balance of $1 since it was paid off in the refinance. Then enter the second 1098 with the full amount. See Where do I enter a 1098 tax form?(0:36)
[Edit 4/5/2021 | 1:44 pm PST]
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