I purchased a second home where I used the builder's mortgage company. I paid a 1% discount point to buydown the interest rate which was approximately $4,000. I settled on May 8, 2020 and the mortgage company sold the loan to Wells Fargo on May 17, 2020 (9 days later). When I try to report the discount point in Turbotax, it asks me on whether I payed off the original loan with the builder or not. How do I report this?
No, the fact that your loan was "sold" or transferred to another lender or investor is not the same as paying off the loan.
I had the same question. TurboTax is asking for the value of the loan as of January 1, 2021. Do I show the full value of the loan on that date for both the original lender and the current lender? It won't let me show a zero for the value of the loan taken from the original lender.