You are correct that the lender is required to enter the amount of outstanding principal on the mortgage as of January 1 of the current year or the Origination Date if originated in the current year in 1098 Box 2. However, you paid $59 in interest but you are reporting an initial balance of $0 and an ending balance of $0 which begs the question: What did you spend $59 in interest on? You should enter the amount of your first draft on the HELOC in 2023 that created an initial outstanding balance.
