When buying and selling a home in the same year, you enter both 1098 forms. But you should enter zero in Box 2 for the Outstanding Mortgage Principal of the home loan that is no longer in existence (sold) by the end of the year on the screen titled Let's get the details from your Home loan 1098.
You will also want to select that the loan is no longer there at the end of the year is marked as paid off during the year. You will want to answer the question Was this loan paid off or refinanced with a different lender in 2021? NO.
You will enter your second loan exactly as it is reported on your Form 1098.
Deducting Home Mortgage Interest
