I want to sincerely thank you for writing such a helpful response despite the complexity of my questions. You’re a lifesaver!
The full heloc was used to pay for the home so that makes that one easier. However, the outstanding mortgage principle is over 750000 so that complicates things.
- I am combining loans 2, 3 and 4: Do I use the details from loan 2 (refinance) or loan 4 (most recent)? I understand I sum some of the boxes but for instance which: lender name? origination date (closing or funding date)? Do I check the box “the interest amount I entered is different that what’s on our 1098” since the interest is now a sum total? Do I mark this 1098 as “most recent”? I figure this might cause some confusion with IRS given they are receiving 3 separate 1098s that I am rolling into 1.
- I am a bit confused about the outstanding mortgage principle calculation. I now have form A (original mortgage), form B (original heloc), and form C (combined loans 2, 3, 4). Do I report box 2 as is (including the sum total for form c), when I am filling out the 1098 form section? Does the calculation you suggested apply to the next section where it asks to enter loan balance as of jan 1, 2022 (mortgage interest deduction limits section)? If you could help me drill into this calculation and where to apply it step by step I'd be very grateful.
