For Schedule A, does "home acquisition debt" include the sub of both home loans, or just the new home?
It depends. I'm not exactly clear on just exactly what's what here. So I'm making some assumptions.
If you work through the program the way it's designed and intended to be used, you will deal with the home that was converted to a rental property first. (this is important.) Note that depending on your specific selections, and assuming you elect to have the program "do the splits" for you, between SCH E for the period of time it was a rental, and SCH A for the period of time it was your primary residence, you'll see in the small print when you get to the "your home" section under the deductions and creidts, that it informs you that it already has things like the mortgage interest and property taxes for that home that is now a rental.
So in the "your home" section you should only be entering the 1098 for the new home that is "now" your primary residence.
Again, assuming you elected to have the program do the splits for you, you should not have to deal with it yourself directly.
I do stress however that you read the small print on each and every screen, as the program can not, does not, and will not split everything. For example, the property insurance on the old home is not deductible for the period of time it was not a rental. So it will be up to you to prorate the insurance yourself and enter the correct amount that is deductible as a rental expense, in the SCH E section of the program.
