In this case Person 1 had a house, but moved out of it during 2021 and bought a house with Person 2. The mortgage for the current house is greater than the Home Acquisition Debt Limit of $750,000. Person 2 is designated as Head of Household, Person 1 is designated as Single. They split the cost of repaying the mortgage. Since they are filing separately, the 1098 box 1 (mortgage interest) can be split between the two unmarried owners. Can / should the 1098 box 2 (outstanding mortgage principal) be split as well? Does the Married Filing Separately limit of $375,000 apply in this case as well? If so, how is that identified in TurboTax?
