Curious, how does the above affect how I should complete the 1098 information when it comes to our deductions?
It doesn't. You'll enter the percentage of box 1 that applies, and the full amount shown in box 2 if asked for it there. There is no $70K limit for rental/business property.
You'll do the same for SCH A under the Deductions & Credits tab in the Your Home section where there is a limit.
