Thank you for this feedback. Would I indicate the loan as paid off by entering "0" as the outstanding mortgage principal in box 2 on my schedule A?
I am apprehensive about changing the value of box 2 to "0" since it would not match the value of box 2 on the 1098 that was issued to me (I don't want this to be a flag to the IRS). On the other hand, it doesn't make sense to count the entire box 2 mortgage balance since I didn't live in the house for most of the year after it was converted to a rental.
Or, would entering "0" treat it in a similar way as if it were "sold"? Just want to make sure I am thinking about this all correctly, and that this would not be a flag in the eyes of the IRS.
