> The "Outstanding Mortgage Principle" amount for the 1098 on the sold house should be $0. This way, when both 1098s are "added" the outstanding balance is correctly shown as the outstanding balance on the current mortgage.
Why? If both loans have different amounts, how would this even work? I can give you an example how this would go wrong.
Let's say the principal of your old loan is 3M and you paid $100k for interest
The principal of your new loan is 750k
If you do what you just said, the 100K interest you paid would all become eligible for deduction which is wrong.
