JillS56
Expert Alumni

Home loans

Your interest is deductible but you need to enter it as I explained.   You do not need to separate them between the 2nd home, a primary home sold and a new home purchased, and the assignment to the new mortgage holder.    Add the amount of interest each of the 4 1098s shows.   Enter the total of the mortgage interest from all four in Box 1 in TurboTax.   In box 2 enter the amount of the outstanding mortgage principal from the most current mortgage.    This should fix the problem.  

 

If you feel better by entering the 1098s for the 2nd home and primary home that you sold, you can do that but in box 2 make sure you do not enter a balance.   There was no balance for 2021 because you sold the homes.   The balances in box 2 for those two loans are what is messing the calculations up.  

 

The one 1098 from the mortgage holder on the new mortgage that was sold or assigned to a different mortgage holder, make sure the box 2 for this is also 0.