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Deductions & credits
The advice for you is as follows. The first 1098 entered for the home you sold would have a zero outstanding mortgage balance on December 31st. The second entry of mortgage interest for your new home purchased would include only the outstanding mortgage balance on December 31st. You can combine the interest amounts on both of the Forms 1098 and make one entry. Neither of the homes had a mortgage balance over the maximum amount of $750,000.
- IRS Publication 936 - Worksheet 1, page 14 for reference
- Deducting Mortgage Interest FAQs
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‎February 11, 2026
6:32 AM