@Ritesh Panchal -i have just tested this in TT and I do see a potential problem
you have two 1098's. enter each one separately,.
the mortgage acquisition date should be the same for both 1098's. In essence it's the date you purchased the home and borrowed the money the 1st time. TT uses this date to keep track of 'acquisition debt'
the mortgage origination date is the date you closed on THAT mortgage.
I tested two 1098's with a $735,000 loan balance using the same acquisition date in 2017; I then entered the older mortgage having an origination date that is the same as that 2017 acquisition date and the newer mortgage having a 2020 origination date
everything worked correctly and all the interest was posted as deductible.
However, when I changed the origination date of the older mortgage to a date after Dec 15, 2017, TT began to limit the interest! I do not think that is correct This could be a situation where the older mortgage is a refinance of the original mortgage and the new mortgage is a second refinance! The balance I used to test is under $750,000 in any event and TT is seeing them as two mortgages on the same home.
Let's see if anyone else posts; what happens if you change the origination date of the paid off mortgage to be the same as the acquisition date?
